Regional bunker benchmarks have moved in mixed directions, and prompt supply of VLSFO is tight in Durban and Richards Bay.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($4/mt) and Rotterdam ($3/mt), and down in Durban ($15/mt)
• LSMGO prices up in Gibraltar ($4/mt) and Rotterdam ($1/mt)
• HSFO prices up in Gibraltar ($3/mt), and down in Rotterdam ($3/mt)
• Rotterdam B30-VLSFO at a $189/mt premium over VLSFO

Bunker prices across all grades have increased in Gibraltar in the past day. Prompt supply of VLSFO and LSMGO is currently tight there, requiring lead times of 5-7 days, a source says.

Gibraltar’s VLSFO premium over Rotterdam has narrowed to $12/mt this week.

Slight congestion has been reported in Gibraltar today, with three vessels currently waiting to receive bunkers, according to port agent MH Bland.

In nearby Ceuta, bunkering is progressing smoothly amid conducive weather conditions. Seven vessels are due to arrive for bunkers in Ceuta today, said shipping agent Jose Salama & Co.

In South Africa’s Durban, securing prompt deliveries of VLSFO can be very difficult. Lead times of 7-10 days are recommended for full coverage from suppliers in Durban and Richards Bay.

Brent

The front-month ICE Brent contract has moved $1.50/bbl lower on the day, to trade at $74.94/bbl at 09.00 GMT.

Upward pressure:

Brent’s price found some support after OPEC+ announced yesterday to stick to its current production policy of gradually raising oil output from April.

At the previous ministerial gathering in December, the group decided to delay the unwinding of the 2.2 million b/d production cut to April 2025, from January 2025.

The unwinding of the group's voluntary production cut will take place on a monthly basis until the end of September 2026.

“OPEC+ held its Joint Ministerial Monitoring Committee (JMMC) meeting yesterday, and as widely expected the group recommended no change to its output policy,” two analysts from ING Bank said.

The decision to extend production cuts into 2025 signals that OPEC+ believes demand growth might not be robust enough to accommodate the full return of supply anticipated in 2025.

Downward pressure:

Brent’s price moved lower after Canada and Mexico came to a last-minute deal with the US, which will see tariffs postponed by at least a month.

Both Mexico and Canada agreed to put more resources on the shared US border to combat the fentanyl drug flow into the US. The delay has put some downward pressure on Brent’s price.

“The oil market gave back a lot of its gains yesterday after Mexico and Canada came to a deal with the US, which saw a delay in the implementation of tariffs,” ING Bank’s analysts said.

By Shilpa Sharma and Aparupa Mazumder

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