Europe & Africa Market Update 8 Dec

Bunker fuel prices at major European and African ports have moved in mixed directions, and prompt supplies remain tight in the ARA hub.

IMAGE: View of the entrance to the Port of Rotterdam, Netherlands. Getty Images

Changes on the day from Friday, to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($1/mt), and down in Gibraltar ($6/mt) and Durban ($5/mt)
• LSMGO prices up in Rotterdam ($7/mt), and down in Gibraltar ($3/mt)
• HSFO prices up in Rotterdam ($4/mt) and Gibraltar ($3/mt), and down in Durban ($3/mt)
• Rotterdam B30-VLSFO premium over VLSFO unchanged at $271/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $16/mt to $378/mt

The price of LSMGO at Rotterdam has gained considerably over the weekend. A higher-priced 50-150 mt stem, fixed at $655/mt, may have pushed the benchmark up.

Meanwhile, LSMGO in neighbouring Amsterdam has inched down over the weekend. Two lower-priced stems, fixed between $643-653/mt, may have exerted downward pressure on the benchmark.

Consequently, Amsterdam’s LSMGO is now priced just $6/mt higher than Rotterdam’s, having narrowed the price premium by $17/mt over the weekend.

Amsterdam’s VLSFO price has also decreased $10/mt over the weekend and is now at a $3/mt discount to Rotterdam, compared to the $8/mt premium observed on Friday. A lower-priced 150-500 mt VLSFO stem, fixed at $401/mt, may have put downward pressure on the benchmark.

Availability is tight for prompt supplies in the ARA hub, with buyers advised to book around 5-7 days ahead to get good coverage from suppliers, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $0.35/bbl on the day from Friday, to trade at $63.61/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has moved higher over the weekend as market participants prepare for a final interest rate cut by the US Federal Reserve (Fed).

Lower US interest rates typically boost demand by making dollar-denominated commodities, like oil, more affordable for non-dollar holders, potentially offering some upside support to prices in the medium term.

“The market is still priced for a December Fed rate cut and the continuation of the easing cycle into 2026,” SPI Asset Management managing partner, Stephen Innes, remarked.

The US central bank is set to hold its Federal Open Market Committee (FOMC) meeting over the next two days.

Downward pressure:

Oil market analysts note that the Russia-Ukraine backdrop is keeping a lid on Brent’s price gains, as Washington continues to push for an immediate peace deal.

The ceasefire could ease western sanctions on Russian energy exports, adding extra barrels to the global oil mix, according to analysts.

“The oil market has to price a very fat tail: a successful deal that leads to sanctions relief could unleash millions of “clean” barrels currently stranded in the shadow fleet,” Innes added.

However, progress in peace negotiations remain slow, with disputes over security guarantees for Kyiv, Reuters reports.

By Nachiket Tekawade and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online