Global Market Update 22 Dec
Bunker prices in major international ports have largely moved upwards, and heavy fog is expected to delay bunkering in the US Gulf region.
IMAGE: Oil refinery with view to downtown Houston. Getty Images
Changes on the day, from Friday, to 09.00 GMT:
- VLSFO prices up in Houston ($23/mt), Gibraltar ($15/mt), Fujairah ($5/mt), Singapore and Rotterdam ($3/mt)
- LSMGO prices up in Houston ($18/mt), Singapore ($15/mt), Rotterdam ($14/mt), Fujairah ($10/mt) and Gibraltar ($5/mt)
- HSFO prices up in Singapore ($15/mt), Fujairah ($9/mt), Gibraltar ($8/mt), unchanged in Rotterdam, and down in Houston ($3/mt)
- B30-VLSFO at a $274/mt premium over VLSFO in Singapore
- B30-VLSFO at a $292/mt premium over VLSFO in Fujairah
- B30-VLSFO at a $248/mt premium over VLSFO in Rotterdam
- B30-VLSFO at a $380/mt premium over VLSFO in Gibraltar
Prices of most conventional fuels across major global bunkering hubs have tracked Brent’s upward move, although Houston’s HSFO price bucked the trend.
The dip in the American port's HSFO price, coupled with an increase in its VLSFO price, has resulted in the widening of Houton's Hi5 spread to $74/mt today, from $50/mt on Friday.
The US Gulf has entered the fog season, and bunkering delays in the region are expected to persist. After resuming traffic on Friday, Houston has once again shut down to vessel traffic on Sunday evening, due to dense fog. Ship movement may resume if weather conditions permit, a source said.
Over at Gibraltar, slight congestion persists with nine vessels currently awaiting bunkers, while some suppliers are delayed by around a day, port agent MH Bland said. In neighbouring Algeciras, some suppliers are also delayed by more than a day, MH Bland added.
As for South Africa's Durban, HSFO supplies can take around a week of lead time, while VLSFO deliveries can be carried out with a notice of 2-4 days, a trader said.
The Hi5 spread at Durban has widened by $28/mt in a single session, due to the port's VLSFO price gaining considerably while its HSFO price declined over the past session.
Singapore’s LSMGO price has recorded the sharpest gains in the previous session. Bunker fuel supply is very tight this week in Singapore, according to a source. Only a limited number of suppliers can offer small HSFO parcels, with a premium expected for quantities of 500 mt and below.
Brent
The front-month ICE Brent contract has gained by $1.35/bbl on the day from Friday, to trade at $61.09/bbl 09.00 GMT today.
Upward pressure:
Brent crude’s price has moved higher after the US government intercepted an oil tanker off Venezuela’s coast, triggering fresh supply-related concerns in the market.
The US Coast Guard is tracking an oil tanker in international waters off Venezuela, marking a second such operation over the weekend and the third in less than two weeks if the vessel is seized, Reuters reported citing sources.
The news builds on last week’s complete ban announced by US President Donald Trump, on sanctioned oil tankers carrying Venezuelan oil.
“Crude futures were inching higher… after the weekend brought an escalating US crackdown on oil movements in and out of Venezuela,” VANDA Insights’ founder and analyst Vandana Hari said.
Downward pressure:
Growing hopes of a ceasefire deal between Russia and Ukraine has put some downward pressure on Brent today.
Over the weekend, US special envoy Steve Witkoff said discussions held over the past three days in Florida between US, European and Ukrainian officials were aimed at bringing their positions into closer alignment on ending the war in Ukraine, Reuters reported.
Witkoff said that both those meetings and separate engagements with Russian negotiators had yielded constructive progress, the report added.
By Aparupa Mazumder, Gautamee Hazarika and Nachiket Tekawade
Please get in touch with comments or additional info to news@engine.online
