Regional bunker benchmarks have moved in mixed directions, and Gibraltar is facing congestion. 

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Gibraltar ($6/mt), Rotterdam ($5/mt) and Durban ($2/mt)  
• LSMGO prices down in Rotterdam ($7/mt) and Gibraltar ($3/mt)
• HSFO prices up in Gibraltar ($4/mt) and Rotterdam ($2/mt)
• Rotterdam B30-VLSFO at a $203/mt premium over VLSFO

HSFO prices in Rotterdam and Gibraltar have inched higher in the past day. A steeper rise in Gibraltar's HSFO price has widened its premium over Rotterdam by $2/mt, to $60/mt now. HSFO availability is slightly tight in Rotterdam, while VLSFO and LSMGO grades are more readily available. Lead times of 5-7 days are advised for HSFO, while VLSFO and LSMGO deliveries are available within 3-5 days, a trader says. 

Gibraltar's VLSFO price has dipped in the past day, while its HSFO price has increased. These diverging price moves have narrowed the port’s Hi5 spread from $64/mt yesterday to around $54/mt now. Gibraltar is witnessing congestion today, with eight vessels currently waiting for bunkers, according to port agent MH Bland. A supplier is facing a backlog of vessels due to recent adverse weather conditions, MH Bland says. Availability across all grades is normal in Gibraltar, with prompt delivery dates on offer. Lead times of 3-5 days are recommended for optimal coverage. 

Meanwhile, bunker availability is still slightly tight in Las Palmas, a trader says. Las Palmas' LSMGO price is currently at a near-parity level with Gibraltar.

Brent

The front-month ICE Brent contract has moved $0.76/bbl lower on the day, to trade at $80.04/bbl at 09.00 GMT.

Upward pressure:

The latest round of US sanctions against Russia’s energy sector, targeting the country’s largest oil and tanker companies, has supported Brent’s price this week.

Oil market analysts expect these sanctions to tighten over the coming days as Donald Trump prepares to take office on 20 January.

Brent’s price gained more support after the American Petroleum Institute (API) reported a drop in US crude oil inventories, supporting demand growth projections.

Crude oil inventories in the US declined by 2.6 million bbls in the week that ended 10 January, according to the API estimates.

“Crude futures rebounded with Brent trading back above $80, supported by sanctions angst, a potential eight weekly decline in US stockpiles,” analysts from Saxo Bank noted.

The broadly followed US government data on crude oil stockpiles from the US Energy Information Administration (EIA) is due later today.

Downward pressure:

Brent’s price gains were capped ahead of US Consumer Price Index (CPI) data, which will be out later today.

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

The US CPI data is also expected to support the US Dollar, according to market analysts. “Today’s Consumer Price Index (CPI) looms large, poised to bolster the greenback potentially,” SPI Asset Management’s managing partner Stephen Innes said.

A stronger US dollar makes commodities like oil costlier for non-dollar holders, ultimately denting demand in the market. 

By Manjula Nair and Aparupa Mazumder

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