Bunker benchmarks in most European and African ports have declined with Brent, and Algeciras is facing strong congestion at its inner anchorage. 

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Gibraltar ($14/mt), Rotterdam ($8/mt) and Durban ($5/mt)  
• LSMGO prices up in Rotterdam ($5/mt), and down in Gibraltar ($10/mt)
• HSFO prices down in Gibraltar ($11/mt) and Rotterdam ($3/mt)
• Rotterdam B30-VLSFO at a $195/mt premium over VLSFO

Rotterdam’s LSMGO price has countered the wider market direction and has increased some in the past day, while Gibraltar’s LSMGO price has dropped by $10/mt. These diverging price moves have narrowed Rotterdam's LSMGO discount to Gibraltar by $15/mt, to around $63/mt now. 

Gibraltar’s VLSFO price has witnessed a steep $14/mt drop in the past day, narrowing its premium over Rotterdam by $6/mt, to $39/mt now. Slight congestion has been reported in Gibraltar today. Three vessels are currently waiting for bunkers in Gibraltar amid some delays, according to port agent MH Bland.

Gibraltar is experiencing strong wind gusts of around 25 knots today which is causing some disruptions in the anchorage area. Algeciras port is also witnessing congestion at its inner anchorage amid rough weather, MH Bland says. 

In Las Palmas, bunker services at berth and some anchorage areas have been cancelled today due to bad weather, it adds. Bunkering is proceeding at the port's more sheltered inner anchorage, with only one vessel allowed at a time.

Brent

The front-month ICE Brent contract has lost $0.71/bbl on the day, to trade at $80.80/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has remained above $80/bbl, supported by oil demand growth during the winter season and supply risks from Russia amid stricter US sanctions.

The US Department of the Treasury has announced sweeping sanctions against Russia’s energy sector, targeting oil companies, tankers, insurers and traders, thereby raising oil supply concerns and supporting oil prices.

“These sanctions threaten global oil dynamics, particularly impacting countries like India and China, where 25% of Russian seaborne oil could face disruptions,” SPI Asset Management’s managing partner Stephen Innes said.

Brent’s price has found support from “a combination of strong winter-related demand… not least, the latest rounds of US sanctions on Russia’s oil industry, which went much further than expected,” Ole Hansen, head of commodity strategy at Saxo Bank said.

Downward pressure:

Brent crude shed the previous day’s gains ahead of US CPI data, which is scheduled to be out tomorrow.

Inflation rate in the US, measured by the change in the Consumer Price Index (CPI), is the key focus this week as markets await the US Federal Reserve's next steps on easing monetary policies in 2025.

Higher interest rates in the US can dampen demand for dollar-denominated commodities like oil, making it costlier for holders of other currencies.

“The mood in the broader financial markets remains downbeat, as investors continue to downgrade expectations of the Federal Reserve’s policy easing this year,” VANDA Insights’ founder and analyst Vandana Hari said. 

By Manjula Nair and Aparupa Mazumder

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