Global Market Update 29 Dec

Bunker fuel prices across major global ports have mostly declined over the weekend, while congestion persists in Gibraltar.

IMAGE: Cruise ship in the Port of Gibraltar. Getty Images

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($2/mt), unchanged in Rotterdam, and down in Zhoushan ($11/mt), Singapore ($3/mt) and Houston ($1/mt)
• LSMGO prices up in Gibraltar ($7/mt), and down in Houston ($14/mt), Rotterdam ($11/mt), Zhoushan ($6/mt) and Singapore ($3/mt)
• HSFO prices up in Gibraltar ($5/mt), and down in Rotterdam ($18/mt), Houston, Zhoushan ($5/mt) and Singapore ($1/mt)

Gibraltar’s bunker prices have moved against the broader market direction and have edged up over the weekend.

The steep slump in Rotterdam’s HSFO price, along with the unchanged VLSFO price, has widened the Dutch port’s Hi5 spread to $54/mt through the weekend, almost at par with Gibraltar’s $52/mt spread.

The LSMGO price has increased in Gibraltar, while it has fallen in Rotterdam. This has widened Gibraltar’s price premium by $18/mt since Friday.

Bunker availability is tight for prompt supplies in Gibraltar, with buyers advised to book almost a week ahead for delivery of any fuel grade, a trader told ENGINE.

Ships calling at Gibraltar are facing congestion, with around 19 vessels currently queued at the port and some suppliers running more than a day behind schedule, port agent MH Bland said.

Meanwhile, Zhoushan’s VLSFO price has dropped by $11/mt - the sharpest decline among the three major Asian bunker ports. Despite the fall, Zhoushan’s VLSFO price is at notable premiums of $34/mt over Fujairah and $30/mt over Singapore.

In Zhoushan, suppliers are advising lead times of around 4–7 days for small parcels across all grades, while larger stems above 1,500 mt require slightly longer lead times of 6–10 days. By comparison, last week VLSFO and LSMGO needed about 4–6 days, and HSFO required 5–7 days.

After intermittent suspensions throughout the past week, the Port of Houston has resumed operations and is currently open to both inbound and outbound traffic.

The biggest price decline in Houston has been recorded for LSMGO. This may have been influenced by a lower-priced 150–500 mt LSMGO stem fixed at $608/mt, putting downward pressure on the benchmark over the weekend.

LSMGO is currently trading $102/mt cheaper than at the beginning of the year, when the grade was benchmarked at $720/mt in Houston.

Brent

The front-month ICE Brent contract has declined by $0.89/bbl on the day from Friday, to trade at $61.55/bbl at 09.00 GMT.

Upward pressure:

Brent crude lacks immediate bullish catalysts, though market participants remain alert to potential supply-side risks that could drive prices higher.

Escalating attacks by Russia and Ukraine on each other’s energy infrastructure have reinforced concerns over possible supply disruptions.

Meanwhile, Washington has intensified economic pressure on Venezuelan oil exports, reflecting its growing unease with the Nicolas Maduro-led government.

Downward pressure:

Brent crude’s price has declined following a meeting between US Presidents Donald Trump and his Ukrainian counterpart, Volodymyr Zelensky.

Both leaders spoke at a news conference at Trump's Mar-a-Lago resort in Florida yesterday, Reuters reported.

The meeting has rekindled market expectations of a ceasefire deal that could potentially end the conflict in Ukraine.

Brent crude’s price has declined after news reports “hinted at progress in Ukraine talks,” SPI Asset Management managing partner Stephen Innes remarked.

If successful, the deal could ease Western sanctions on Russian energy exports, according to market analysts.

The meeting has helped in “reviving the idea that more Russian barrels could find their way back into a market already wrestling with oversupply,” Innes said.

By Nachiket Tekawade, Tuhin Roy, Gautamee Hazarika and Aparupa Mazumder

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