Europe & Africa Market Update 9 Nov

Bunker prices across Europe and Africa have moved in mixed directions since Friday, while rough weather has caused a suspension in bunkering at Huelva.

IMAGE: Two ships moored at a liquid bulk terminal in the Port of Huelva. Port of Huelva

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices up in Durban ($107/mt) and Gibraltar ($49/mt), and down in Rotterdam ($6/mt)
• LSMGO prices up in Gibraltar ($47/mt) and Durban ($41/mt), and down in Rotterdam ($17/mt)
• HSFO prices down in Gibraltar ($38/mt), Durban ($21/mt) and Rotterdam ($5/mt)
• B30-VLSFO price up in Rotterdam ($74/mt)

Gibraltar’s VLSFO price has gained sharply, while the port’s HSFO price has dropped significantly, thus widening the port’s Hi5 spready by $87/mt over the weekend.

Meanwhile, Rotterdam’s VLSFO price has seen a dip over the weekend. This has flipped Gibraltar's price from an $8/mt discount compared with the Dutch port, to a $47/mt premium over the weekend.

Gibraltar’s LSMGO price has also seen a steep gain, while Rotterdam’s LSMGO price has declined. This has widened Gibraltar’s price premium over Rotterdam by $64/mt since Friday.

Fuel availability is tight in the Gibraltar Strait ports for prompt delivery dates, with buyers advised lead times of 6-7 days to get good coverage from suppliers in the region, a trader told ENGINE.

Gibraltar is slightly congested, with around 13 vessels currently lined up for bunkers, mainly due to unavailability of bunker barges or lack of space, port agent MH Bland said. Some suppliers are expecting delays of between 4-8 hours, while one supplier is running more than a day late on deliveries, the port agent added.

In neighbouring Algeciras, one supplier is around 18-30 hours delayed. In Ceuta, barge deliveries may be delayed by 6-8 hours, MH Bland said.

Meanwhile, bunkering has been suspended in the Spanish port of Huelva due to rough weather, MH Bland said. Rough winds of more than 25 knots and as high as 50 knots, and high swells between 2-5 knots are expected intermittently at the port until 13 November. The suspension may last upto 14 November, when the weather is expected to improve, the port agent said.

As there is only one barge available in the port for deliveries, there may be delays in supply due to re-scheduling of the barge, MH Bland said.

Brent:

The front-month ICE Brent contract has fallen by $1.12/bbl on the day from Friday, to trade at $96.54/bbl at 09.00 GMT.

Upward pressure:

Brent futures have gained some support from ongoing attacks on vessels in the Strait of Hormuz. Yemen-based Houthi rebels have claimed responsibility for Sunday’s an attack on Saudi state-owned oil company Aramco’s building in Riyadh, Reuters reported.

Additionally, commercial crude stocks in the US fell by 865,000 bbls to 409.8 million bbls in the week ended 30 October, according to the US Energy Information Administration (EIA).

Downward pressure

Brent’s price has declined following recent remarks by US President Donald Trump.

On Sunday, Trump said that he was ‘highly unlikely’ to order fresh strikes on Iran, if talks to resolve the US-Iran conflict continues, Reuters reported.

Expectations of a possible de-escalation in the conflict have kept oil prices under pressure, following election losses for Trump’s party.

“Vice President Vance attributed the Republican losses to the conflict with Iran, while Democrats Schumer and Jeffries pledged to end the war,” said ANZ Bank senior commodity strategist Daniel Hynes.

By Nachiket Tekawade and Shilpa Sharma

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