Bunker prices in most European and African ports have risen with Brent values, and securing prompt deliveries of VLSFO and LSMGO can be difficult in Gibraltar.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($24/mt), Gibraltar ($20/mt) and Rotterdam ($5/mt)
• LSMGO prices up in Gibraltar ($17/mt) and Rotterdam ($6/mt)
• HSFO prices up in Rotterdam ($9/mt) and Gibraltar ($8/mt)
• Rotterdam B30-VLSFO at a $188/mt premium over VLSFO

Bunker prices across all grades have increased in Gibraltar and Rotterdam in the past day. A steeper rise in Gibraltar’s VLSFO price has widened its premium over Rotterdam by $15/mt, to $30/mt now.

Gibraltar’s VLSFO price has increased more than its HSFO price, widening the port’s Hi5 spread by $12/mt, to nearly $80/mt now.

Securing prompt deliveries of VLSFO and LSMGO grades can be slightly difficult in Gibraltar. Lead times of 7-8 days are recommended for full coverage from suppliers, a source says. Availability of HSFO is said to be normal in Gibraltar and other Mediterranean locations such as Piraeus and off Malta.

Malta Offshore’s HSFO premium over Gibraltar has narrowed coming into this week, currently standing at $6/mt.

Bunkering is progressing smoothly in Gibraltar amid conducive weather conditions, with only two vessels currently waiting to receive bunkers, according to port agent MH Bland.

In Ceuta, 10 vessels are due to arrive for bunkers today, up from seven vessels yesterday, said shipping agent Jose Salama & Co.

Strong wind gusts could complicate deliveries in Las Palmas.

Brent

The front-month ICE Brent contract has gained $0.76/bbl on the day, to trade at $75.70/bbl at 09.00 GMT.

Upward pressure:

Crude oil prices moved higher after US President Donald Trump signed a directive to increase pressure on Iranian crude flows, by enforcing stricter sanctions with an aim to drive Tehran’s oil exports to zero.

“As pledged during his campaign, Trump has issued a directive that aims to ramp up economic pressure on Iran,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

This development is hardly unexpected, considering that during Trump’s previous term he had adopted a hardline stance on Iran and reinstated oil sanctions at the time, according to market analysts.

The stricter enforcement of sanctions “could see as much as 1m b/d [ 1 million b/d] of supply at risk,” two analysts from ING Bank said.

Downward pressure:

Brent’s price felt some downward pressure from rising US crude inventories and a freshly brewing Sino-US tariff war.

The White House confirmed yesterday that a 10% tariff would be applied to all imports from China. This news was immediately followed by China imposing a retaliatory tariff of 10% on US oil imports.

“The trade dispute between the US and China has raised demand concerns—not least in China, an economy that has grown increasingly dependent on exports at a time of weak consumer confidence at home,” Saxo Bank’s head of commodity strategy Ole Hansen remarked.

Oil demand growth concerns got another hit after the American Petroleum Institute (API) reported a big spike in US crude stocks. Crude oil inventories in the US increased by 5.02 million bbls in the week that ended 31 January, according to the API.

A surge in US crude stocks can indicate a drop in oil demand, which can cap Brent's price rise.

By Shilpa Sharma and Aparupa Mazumder

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