Bunker benchmarks in European and African ports have mostly fallen with Brent, and congestion has eased in Gibraltar port. 

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Rotterdam ($7/mt), Gibraltar ($3/mt) and Durban ($1/mt)
• LSMGO prices up in Rotterdam ($11/mt) and Gibraltar ($1/mt)
• HSFO prices down in Rotterdam ($9/mt) and Gibraltar ($5/mt)
• Rotterdam B30-VLSFO at a $199/mt premium over VLSFO

Rotterdam’s LSMGO price has registered a sharp gain in the past day, supported by a higher-priced stem booked at $693/mt in the past day. However, the grade's price in Gibraltar has held steady. The price moves have narrowed Rotterdam’s LSMGO discount to Gibraltar by $10/mt, to $64/mt now.  

Congestion has eased in Gibraltar amid calmer weather conditions. One vessel is currently waiting to bunker in Gibraltar, down from 12 vessels yesterday, according to a source. Rough weather led to an increase in the backlog of vessels in the previous day.

Gibraltar’s HSFO price has seen a slight dip of $5/mt in the past day, while Malta Offshore's HSFO price has mostly held steady. These price moves have widened Malta Offshore's HSFO premium over Gibraltar by $4/mt to around $9/mt now. Availability is good for all grades off Malta, except for LSMGO which is slightly tight, a trader said.  

Bunkering is proceeding smoothly in Ceuta port where ten vessels are due to arrive for bunkers today, up from five vessels yesterday, said shipping agent Jose Salama & Co. A supplier continues to experience some delays at one of the terminals, the shipping agent added. 

Brent

The front-month ICE Brent contract has lost $0.24/bbl on the day, to trade at $75.93/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has continued to trade above $75/bbl as oil demand growth optimism in the US got a boost from increased oil use for heating purposes during the winter storms.

Oil prices have been rallying, “on the back of severe cold weather in the US and Europe,” VANDA Insights’ founder and analyst Vandana Hari said.

Additionally, state-owned refiners in China are set to increase crude throughput in January amid expectations of strong demand for oil products around the Chinese New Year.

Chinese state-owned refiners plan to process a total of 40.50 million mt of crude in January, with the daily throughput at around 1.31 million mt (9.62 million b/d), up 3.12% from December 2024.

Downward pressure:

The surge in oil production outside OPEC+ has put some downward pressure on Brent’s price in recent days, according to market analysts, with more efficient ways to boost oil output in the US.

Global oil production is “rising at an average rate of more than 4% per year as the industry learns to squeeze more output from fewer rigs,” independent market analyst John Kemp remarked.

“Persistent production growth has frustrated efforts by Saudi Arabia and its OPEC⁺ allies to drain excess inventories and drive price higher by reducing their own output,” Kemp added.

Oil market investors are now waiting for new policy changes on oil production in the US as President-elect Donald Trump prepares to take office later this month.

By Manjula Nair and Aparupa Mazumder

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