Europe Market Update 27 Feb

Bunker fuel prices across European and African ports have moved in mixed directions, while prompt bunker supplies are tight in the Gibraltar strait.

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

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($6/mt) and Durban ($4/mt), and unchanged in Gibraltar
• LSMGO prices up in Gibraltar ($5/mt) and Rotterdam ($2/mt)
• HSFO prices up in Durban ($13/mt), and unchanged in Rotterdam and Gibraltar
• B30-VLSFO prices up in Gibraltar ($17/mt) and Rotterdam ($15/mt)

The price of LSMGO in Algeciras has fallen by $10/mt over the past session, widening the Spanish port’s discount to Gibraltar’s by around $15/mt.

Ceuta’s LSMGO price has gained approximately $20/mt, widening its premium over Gibraltar by $15/mt.

Bunkering LSMGO at the Gibraltar strait ports may require around 5-7 days of lead time, while HSFO and VLSFO need a longer notice of around 8-10 days, a trader said.

Some suppliers in Gibraltar are currently running around 2-4 days behind schedule, while some suppliers in Algeciras may be delayed by anywhere between 12 hours and three days, port agent MH Bland said.

Brent

The front-month ICE Brent contract has increased by $0.35/bbl on the day, to trade at $71.18/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has remained largely steady after the US and Iran extended nuclear negotiations, with market analysts expecting further rounds of indirect talks to come soon.

Representatives from both countries met in Geneva yesterday to discuss Tehran’s uranium enrichment programme after US President Donald Trump threatened military actions against the OPEC member.

The US has demanded for the handover of all 60% enriched uranium to it, according to Reuters.

“Before talks ended, Iran’s state media reported that Tehran won’t allow enriched uranium to leave the country,” ANZ Bank’s senior commodity strategist Daniel Hynes wrote.

Washington has not released any official statement regarding the progress of the meeting. Besides, there is “little time to reach a deal before President Trump’s deadline of 1–6 March,” Hynes said.

Negotiations are expected to resume next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said on social media platform X.

Oman is the mediator in the ongoing discussions. “Rising tensions between the US and Iran have reminded the oil market that geopolitical risks should not be ignored,” Hynes added.

Downward pressure:

Saudi Arabia-led OPEC group is expected to increase oil output by 137,000 b/d for April in its upcoming meeting on 1 March – changing course from a three-month pause in hikes, Reuters reported.

This news has put some downward pressure on Brent’s price today.

The Vienna-headquartered coalition had implemented hikes of 137,000 b/d in 2025, before deciding to pause the increases for the first quarter of this year – a move likely to withhold a surplus in the global oil market, according to analysts.

By Nachiket Tekawade and Aparupa Mazumder

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