Regional bunker benchmarks have tracked Brent’s upward movement, and prompt HSFO supply is very tight in Gibraltar. 

PHOTO: Cargo being loaded on a container ship in Istanbul. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($26/mt), Gibraltar ($13/mt) and Rotterdam ($9/mt)  
• LSMGO prices up in Rotterdam ($14/mt) and Gibraltar ($8/mt)  
• HSFO prices up in Rotterdam ($11/mt) and Gibraltar ($8/mt)
• Rotterdam B30-VLSFO at a $201/mt premium over VLSFO

VLSFO has gained more than HSFO in Gibraltar in the past day, to widen the port's Hi5 spread by $5/mt to $13/mt - which is still very low, and has been low for some time.

Prompt HSFO supply has tightened in Gibraltar today, a trader told ENGINE. This has stretched lead times from 3-5 days seen earlier this week, to 5-7 days now. Gibraltar is currently experiencing calm weather but bunkering disruptions may occur on Sunday when strong wind gusts of up to 27 knots are forecast. 

Prompt HSFO supply has also tightened in Las Palmas today with lead times stretching up to 11 days now, a trader said. Prompt VLSFO availability is good in Las Palmas with lead times of 3-5 days. A higher-priced non-prompt VLSFO stem booked in Las Palmas earlier today has raised the benchmark by $4/mt in the past day. These price moves have widened Las Palmas’ VLSFO discount to Gibraltar by $9/mt to $16/mt now.

Brent

Front-month ICE Brent has traded up by $2.01/bbl on the day to stand at $74.66/bbl at 09.00 GMT today. But Brent is set to finish the week $1/bbl lower than the last.

Upward pressure:

Iran could hit Israel in retaliation for striking it, Axios reports. This could stoke renewed supply fears into market participants.

OPEC+ may not expand oil supply in December as planned. Weak demand has given grounds for holding back. A decision on this is expected next week.

Downward pressure:

US oil production hit a record high of 13.4 million b/d in August, erasing a previous 13.3 million b/d record.

By Manjula Nair and Erik Hoffmann

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