Europe & Africa Market Update 9 Mar
Prices have increased across European and African ports, while bunker availability is tight in the Gibraltar strait.
IMAGE: Aerial view of the Bay of Gibraltar. Getty Images
Changes on the day from Friday to 09.00 GMT today:
- VLSFO prices up in Durban ($205/mt), Gibraltar ($168/mt) and Rotterdam ($150/mt)
- LSMGO prices up in Gibraltar ($297/mt) and Rotterdam ($279/mt)
- HSFO prices up in Durban ($188/mt), Gibraltar ($181/mt) and Rotterdam ($145/mt)
- B30-VLSFO prices up in Rotterdam ($194/mt) and Gibraltar ($94/mt)
Bunker prices have surged over the weekend at major European and African ports, paralleling Brent.
Gibraltar’s LSMGO price has crossed $1400/mt since Friday. HSFO and VLSFO prices are also between $750-$850/mt.
Fuel availability is tight in the Gibraltar strait ports. In Algeciras, deliveries can be done earliest by 19 March, a trader said.
Currently, there are around 13 vessels currently awaiting bunkers at Gibraltar, while some suppliers are running 1-2 days behind schedule, according to port agent MH Bland said.
In Algeciras, the inner anchorage is suffering slight congestion, with around three vessels in queue, the port agent said.
Brent
The front-month ICE Brent contract has spiked by $21.61/bbl on the day from Friday, to trade at $106.80/bbl at 09.00 GMT.
Upward pressure:
Brent crude’s price has climbed above $100/bbl as the conflict in Iran continues to show no signs of de-escalation.
Oil prices could move higher to as much as $150/bbl if the highly critical Strait of Hormuz remains closed to tankers, Qatar’s Energy Minister Saad al-Kaabi said in an interview with Financial Times.
“Oil prices are surging after Qatar’s Energy Minister has issued dire warnings that is sending shockwaves through global energy markets,” Price Futures Group’s senior market analyst Phil Flynn said.
There is also news that finance ministers from the G7 group of developed countries will discuss a joint release of oil from emergency reserves coordinated by the International Energy Agency (IEA).
“No signs of de-escalation in the war means the market is having to aggressively price in a prolonged supply disruption,” two analysts from ING Bank noted.
Downward pressure:
The total number of rigs drilling for crude oil in the US rose by four to 411 units last week, according to Baker Hughes.
The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.
By Nachiket Tekawade and Aparupa Mazumder
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