Prices in key European and African bunker hubs have moved in mixed directions, and prompt bunker supply is normal in Istanbul. 

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($3/mt) and down in Rotterdam and Gibraltar ($1/mt) 
• LSMGO prices up in Rotterdam ($4/mt), and unchanged in Gibraltar  
• HSFO prices unchanged in Rotterdam, and down in Gibraltar ($1/mt)  
• Rotterdam B30-VLSFO premium over VLSFO down by $1/mt to $208/mt

Rotterdam’s LSMGO price has gained in the past day, while the grade's price in Gibraltar has held steady. This has narrowed Rotterdam’s LSMGO discount to Gibraltar by $4/mt to $80/mt now. 

In Las Palmas, a lower-priced LSMGO prompt stem booked in the past day has contributed to downward pressure on the benchmark. This has flipped Las Palmas' LSMGO price from a $10/mt premium over Gibraltar to a $21/mt discount now. Rough weather conditions may disrupt bunkering in Las Palmas today, according to port agent MH Bland. In Gibraltar, bunkering is proceeding smoothly, but a supplier is witnessing delays of 3-4 hours, MH Bland said. 

Suppliers are reporting slow demand in Turkey’s Istanbul port, according to a trader. The port has good availability across all grades, with recommended lead times of 3-5 days. Istanbul’s VLSFO is currently at a $57/mt premium over Gibraltar, compared to a month ago when it was at a $25/mt premium. 

Similarly, Piraeus’ VLSFO price, which was at a near-parity level with Gibraltar’s VLSFO a month ago, is currently at a $64/mt premium over Gibraltar. 

Brent

The front-month ICE Brent contract has moved $0.08/bbl lower on the day, to trade at $75.97/bbl at 09.00 GMT.

Upward pressure:

Brent’s price found little support from escalating fears of a supply squeeze.

Operations remain halted at Caspian Pipeline Consortium’s (CPC) pumping station located in the Kavkazsky district of southern Russia, after it came under a Ukrainian drone attack on Monday.

The facility transports over two-thirds of all oil exports from Kazakhstan, and crude from Russian oil fields, including those in the Caspian Region, CPC said.

“Kazakh crude exports from the Black Sea port of Novorossyisk remain reduced by about 30% or 380,000 b/d following a Ukrainian drone attack on the Kropotkinskaya pumping station,” VANDA Insights’ founder and analyst Vandana Hari said.

Downward pressure:

Brent’s price moved lower after the US Energy Information Administration (EIA) reported a rise in US crude oil inventories.

Commercial US crude oil inventories increased by 4.6 million bbls to touch 432 million bbls for the week ending 14 February, according to data from the EIA.

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

By Manjula Nair and Aparupa Mazumder

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