Regional bunker benchmarks have moved in a tight range, and supply is good across all grades in Gibraltar.

Changes on the day, from Friday to 09.00 GMT today:

• VLSFO prices down in Durban ($4/mt), Rotterdam ($2/mt) and Gibraltar ($1/mt)
• LSMGO prices unchanged in Gibraltar, and down in Rotterdam ($4/mt)
• HSFO prices unchanged in Rotterdam and Gibraltar
• Rotterdam B30-VLSFO at a $180/mt premium over VLSFO

Bunker prices across all grades have moved in a narrow range in Rotterdam and Gibraltar. Rotterdam’s VLSFO and LSMGO prices have decreased some, while its HSFO price has held steady. Prompt supply of HSFO is a bit tight in the ARA hub, while the grade’s supply is said to be normal in Gibraltar.

Supply of all bunker fuel grades remains normal in Gibraltar, with recommended lead times of 3-5 days. Bunkering is progressing normally in the port amid conducive weather conditions. The backlog of vessels waiting to bunker in Gibraltar has been reduced to 13 vessels today, down from 15 vessels yesterday, according to a source. The port experienced harsh weather conditions earlier this week which led to an increase in the backlog of vessels.

Bunker supply is good across all grades off Malta. Malta Offshore’s LSMGO price has come down by $10/mt. A lower-priced LSMGO stem fixed at $700/mt in the past day has contributed to drag the benchmark down. Malta Offshore’s LSMGO price is currently at a discount of about $20/mt to Gibraltar.

Brent

The front-month ICE Brent contract has moved $0.56/bbl lower on the day, to trade at $73.11/bbl at 09.00 GMT.

Upward pressure:

Brent’s price gained as supply-related concerns escalated with Israel launching airstrikes on ports and energy infrastructures in Houthi-controlled areas of Yemen, Reuters reported.

The Israel Defense Forces (IDF) has threatened with more attacks against the Iran-aligned armed group, raising further concerns of a spillover of the conflict into neighbouring oil-rich areas, analysts said.

Meanwhile, oil demand growth found some support after the US Energy Information Administration (EIA) reported a slump in US crude stocks.

Commercial crude oil inventories in the US declined by 934,000 bbls to touch 421 million bbls for the week ending 13 December, according to data from EIA.

A drop in US crude stocks indicates oil demand growth in the world’s largest oil-consuming country.

Downward pressure:

Brent lost momentum after the US Federal Reserve (Fed) hinted at a softer approach to interest rate cuts next year.

Despite cutting interest rates for the final time in 2024, oil prices and the broader commodities market reacted negatively to the US central bank’s “hawkish” stance on economic and monetary policies next year, oil market analysts said.

“Crude futures were inching lower… as the US Federal Reserve’s signal of a slower and shallower path of interest rate cuts in 2025 dampened the mood in the financial markets,” VANDA Insights’ founder and analyst Vandana Hari said.

Higher interest rates in the US can make oil and other dollar-denominated commodities costlier for holders of other currencies and weigh on demand.

Brent continues to see headway from a slowdown in oil demand growth and a lack of efficient economic policies in China, the world’s second largest crude-consuming nation.

China's National Bureau of Statistics (NBS) reported that the country’s retail sales growth came in weaker than unexpected in November, rising by only 3% year-on-year, and noting a sharp drop from the 4.8% growth achieved in October.

“Weak economic data in China also sort of weighed on [oil market] sentiment,” Price Futures Group senior market analyst Phil Flynn said.

By Shilpa Sharma and Aparupa Mazumder

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