Bunker benchmarks in most European and African ports have increased with Brent, and bunker supplier Galp has restarted HSFO supply in Portuguese ports.

PHOTO: Commercial harbour at the port of Las Palmas. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($14/mt), Gibraltar ($3/mt) and Durban ($1/mt)  
• LSMGO prices up in Durban ($10/mt), Rotterdam ($8/mt) and Gibraltar ($4/mt) 
• HSFO prices up in Rotterdam ($5/mt), and down in Gibraltar ($1/mt)

Rotterdam’s VLSFO price has increased steeply in the past day. A higher-priced non-prompt VLSFO stem fixed at $538/mt for 500-1500 mt has contributed to push the benchmark higher. The port’s HSFO price has also increased some in the past day. A steeper rise in Rotterdam's VLSFO price has widened the port's Hi5 spread from $86/mt yesterday to $95/mt.

A lower-priced non-prompt LSMGO stem booked in Algeciras in the past day has triggered a drop in the benchmark by $4/mt. As a result, Algeciras’ LSMGO price has flipped from a $7/mt premium over Gibraltar yesterday, to a slight discount of $1/mt now. VLSFO and LSMGO grades are currently tight for prompt deliveries in Algeciras, a trader said.

Meanwhile, bunker supplier Galp has restarted HSFO supply in the Portuguese ports of Lisbon, Setúbal and Sines. Lisbon's HSFO price is currently at discounts of $15/mt and $6/mt to Las Palmas and Gibraltar, respectively.

Brent

The front-month ICE Brent contract has moved $0.92/bbl higher on the day, to trade at $79.12/bbl at 09.00 GMT.

Upward pressure:

Brent’s price continued to move towards $80/bbl mark, after crude oil supply risks escalated in the wider Middle Eastern region.

The Israel Defense Forces (IDF) ramped up drone strikes across the conflict-stricken Gaza Strip yesterday, killing at least 40 people including medical professionals, Reuters reports. This news has put upward pressure on Brent.

“Israel remains on edge as it prepares for a retaliatory attack from Iran following the assassination of Hamas and Hezbollah leaders,” ANZ Bank’s senior commodity strategist Daniel Hynes wrote.

Libya's National Oil Corporation (NOC) declared force majeure in its El Sharara oil field this week, fueling further supply concerns, analysts said. The oil field has a crude oil production capacity of about 300,000 b/d. “There is also no end in sight to the political situation that has closed Libya’s Sharara oil field,” Hynes said.

Downward pressure:

A strong dollar, following better-than-expected US jobs data, built downward pressure on Brent’s price, as it typically makes dollar-denominated commodities like oil more expensive for holders of other currencies.

Besides, "... a call between Iran’s President Masoud Pezeshkian and French counterpart Emmanual Macron potentially opened a diplomatic path to de-escalation [of the nine-month-old Israel-Hamas conflict]", Hynes further remarked.

By Manjula Nair and Aparupa Mazumder

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