Regional bunker benchmarks have mostly declined, and global IT outages have impacted bunker offerings in the ARA hub, Gibraltar and Las Palmas.PHOTO: A container ship moored in a commercial dock in Rotterdam. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices unchanged in Rotterdam, and down in Gibraltar and Durban ($5/mt) 
• LSMGO prices up in Rotterdam ($6/mt), and down in Durban ($18/mt) and Gibraltar ($13/mt)
• HSFO prices unchanged in Gibraltar and down in Rotterdam ($6/mt)

Rotterdam’s LSMGO price has countered the wider market direction and gained in the past day. A higher-priced prompt LSMGO stem fixed in Rotterdam for $743/mt for 150–500 mt has pushed the benchmark higher. Availability of LSMGO is normal in the port, with some suppliers able to offer the grade for prompt delivery dates.

Some suppliers in the ARA hub, Gibraltar and Las Palmas were unable to put up bunker offers due to global IT outages, two traders told ENGINE. The global IT outages on Friday have severely impacted businesses worldwide. 

Due to technical issues with their systems, a few suppliers in the ARA hub were unable to post offers earlier today, another trader said.

The Gibraltar Port Authority has issued a fog warning until tomorrow, which may hamper bunkering in the port area.

Nine vessels are due to arrive for bunkers in Ceuta today, down from ten yesterday, ship agent Jose Salama & Co. said. One vessel is waiting for berthing at one of the terminals. A supplier is reporting up to three hours of delay at one of the terminals.

Brent

The front-month ICE Brent contract has inched $0.06/bbl higher on the day, to trade at $85.30/bbl at 09.00 GMT.

Upward pressure:

Supply tightness through the third quarter of this year has continued to provide a floor to Brent's price this week.

Wildfires across Alberta, Canada are escalating threats to production in the oil sands-rich area. More than 130 wildfires are currently burning in the region, according to media reports. Oil producers, including MEG Energy have evacuated workers from its Christina Lake oil-sands site, Bloomberg reports.

This has put about 400,000 b/d of oil production under direct threat, according to ANZ Bank’s senior commodity strategist Daniel Hynes.

“In the short term, supply concerns from Canada provide a more solid floor [to oil prices],” two analysts from ING Bank said.

In the US, declining crude oil inventories continue to support robust demand growth expectations in the market. Commercial crude oil inventories in the US dropped by 4.87 million bbls to 440 million bbls in the week ending 12 July.

“The recent US data bolstered the argument for the Fed to accelerate its rate-cutting plans, which could potentially encourage increased spending on oil,” analysts from Saxo Bank said.

Downward pressure:

Brent futures moved in a narrow range today amid demand growth concerns from China.

Economic activity in the world’s second-largest oil consumer declined in the second quarter of this year. The country's gross domestic product (GDP) grew 4.7% in the second quarter, down from the 5.3% growth rate recorded in the previous quarter.

Additionally, the country’s June crude throughput touched this year’s lowest level. Chinese refineries processed about 58.32 million mt (14.19 million b/d) of crude in June, down 3.7% from the same period a year ago.

“Growing Chinese demand concerns are capping the market, following a raft of data earlier this week suggesting a softer demand picture,” ING Bank’s analysts said.

By Manjula Nair and Aparupa Mazumder

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