Europe & Africa Market Update 8 Sep

Bunker benchmarks have broadly increased across European and African ports, while prompt fuel availability remains tight in the Strait of Gibraltar.

IMAGE: Aerial view of the Bay of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar, Durban ($13/mt) and Rotterdam ($10/mt)
• LSMGO prices up in Durban ($43/mt), Gibraltar ($36/mt) and Rotterdam ($7/mt)
• HSFO prices up in Rotterdam ($23/mt), Durban ($19/mt) and Gibraltar ($5/mt)
• VLSFO B-30 prices up in Rotterdam ($21/mt)

Gibraltar's LSMGO price has risen more than Rotterdam's benchmark over the past day, widening its premium by $29/mt to $185/mt.

The VLSFO price in Algeciras has dipped by $2/mt, while Gibraltar’s VLSFO price has gained $13/mt. Algeciras’ VLSFO price has moved to a small $9/mt discount to Gibraltar, compared with a $6/mt premium yesterday.

Fuel availability in the Gibraltar Strait for HSFO, VLSFO and LSMGO is tight for prompt delivery dates, with suppliers recommending lead times of 10-12 days for all grades, a trader told ENGINE.

Strong congestion has been reported in Gibraltar today, primarily due to a lack of space or barge unavailability, with around 23 vessels currently awaiting bunkers, according to port agent MH Bland.

Some suppliers are experiencing delivery delays of up to a day, the port agent added.

Additionally, the Gibraltar Port Authority has issued a warning over isolated fog patches in the Bay of Gibraltar area, but expects the fog to clear before the afternoon.

Brent

The front-month ICE Brent contract has gained by $2.68/bbl on the day, to trade at $99.24/bbl at 09.00 GMT.

Upward pressure:

Brent crude is trading close to triple-digit territory after Iran said it would have complete control over the Strait of Hormuz, Bloomberg reported.

Tehran is preparing a final agreement with Oman to establish a new shipping corridor through the strait and retain complete control over it.

“The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the US and Iran,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile, Washington has rejected Tehran's assertion of authority over the Strait of Hormuz, maintaining that the vital waterway remains a transit corridor under international law.

The latest escalation “could see Persian Gulf supply remain constrained through the rest of 2026. We don’t expect a full return to pre-war throughput until late Q1 [first quarter] or early Q2 [second quarter of] 2027,” Hynes added.

Downward pressure:

While there is no major downward pressure on Brent’s price today, market analysts will continue to monitor volumes of oil flowing through the Strait of Hormuz.

Last week, US secretary of energy Chris Wright said 17 million bbls of crude passed through the waterway on 31 August, the highest in recent months, Reuters reported.

“If Strait of Hormuz flows continue uninterrupted despite the latest escalation, the upward pressure on prices may begin to fade,” two analysts from ING Bank noted.

By Nachiket Tekawade and Aparupa Mazumder

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