Regional bunker benchmarks have shown mixed market directions, and very prompt availability is tight in Barcelona. 

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($1/mt), and down in Rotterdam ($11/mt) and Gibraltar ($4/mt) 
• LSMGO prices unchanged in Gibraltar, and down in Rotterdam ($6/mt) 
• HSFO prices up in Rotterdam ($2/mt), and unchanged in Gibraltar
• Rotterdam B30-VLSFO at a $175/mt premium over VLSFO

Rotterdam’s VLSFO price has countered Brent’s upward pull and dropped by a steep $11/mt in the past day. A 500-1,500 mt lower-priced VLSFO stem fixed at $485/mt for prompt delivery has pulled the benchmark lower. In contrast, the port’s HSFO price has inched up by a slight $2/mt in the past day. These diverging price moves have narrowed Rotterdam’s Hi5 spread from $60/mt to $47/mt now. 

Two lower-priced LSMGO stems booked in Rotterdam, one for prompt delivery and another for non-prompt delivery have pulled Rotterdam’s LSMGO price down in the past day. The price moves have widened Rotterdam’s LSMGO discount to Gibraltar by $6/mt to $87/mt now. 

Gibraltar’s VLSFO price has also dipped amid downward pressure from a lower-priced non-prompt stem booked in the past day. As a result, Gibraltar’s VLSFO premium over Rotterdam has widened by $7/mt to $45/mt now. 

Meanwhile, securing very prompt delivery stems in Spain’s Barcelona may be difficult, a trader said. Lead times of 5-7 days are advised for all three grades in the port.

Brent

The front-month ICE Brent contract has traded $0.30/bbl higher on the day, to trade at $72.83/bbl at 09.00 GMT.

Upward pressure:

Brent futures gained momentum as the market shifted focus from geopolitical risk premiums to OPEC’s next move, after the oil consortium postponed its ministerial meeting to 5 December.

The Saudi Arabia-led oil producers’ group will discuss its plan to phase out its voluntary production cut of 2.2 million b/d at its upcoming virtual meeting. However, market analysts expect the group members to maintain production cuts through January 2025 to support prices.

“Crude oil prices were steady as the market contemplates the next move by OPEC,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Peace talks in Lebanon, mediated by the US and France, have eased supply disruption concerns in the oil market and put some downward pressure on Brent’s price.

A ceasefire deal between Israel and Iran-aligned Hezbollah armed group was achieved earlier this week. Israel’s war cabinet approved the agreement, effective Wednesday morning across the Lebanon-Israel border.

“A ceasefire agreement between Israel and Hezbollah giving us a ray of hope that maybe we can find a way out of the vicious cycle of war that has plagued the world over the last four years,” Price Futures Groups’ senior market analyst Phil Flynn remarked.

By Manjula Nair and Aparupa Mazumder

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