Bunker benchmarks have gained in the past day with Brent, and Malta Offshore’s Hi5 spread is around $10/mt.

Changes on the day to 09.00 GMT today:

• VLSFO up in Gibraltar ($6/mt) and Rotterdam ($4/mt), and down in Durban ($2/mt) 
• LSMGO prices up in Gibraltar ($10/mt) and Rotterdam ($6/mt) 
• HSFO prices up in Rotterdam ($7/mt) and Gibraltar ($4/mt) 
• Rotterdam B30-VLSFO premium over VLSFO up by $23/mt to $237/mt

Rotterdam’s HSFO price has increased in the past day, erasing losses from the previous day. The port’s HSFO price has outpaced GIbraltar’s HSFO price spike, narrowing Rotterdam’s HSFO discount to Gibraltar by $3/mt to $51mt now. 

Gibraltar’s Hi5 spread has widened slightly from $25/mt yesterday to $27/mt now. The backlog caused by congestion in the port has eased slightly in Gibraltar with 13 vessels waiting for bunkers today, down from 16 yesterday, said port agent MH Bland. A supplier is currently witnessing up to 36 hours of delay due to congestion.

Gibraltar’s Hi5 spread is at near parity with Hi5 spreads in Las Palmas and Istanbul which is around $28/mt. Lisbon has a narrow scrubber spread of $12/mt while Malta Offshore’s spread is around $10/mt today. Bunker supply is normal in Istanbul, Piraeus and Malta Offshore, supply is ample, a trader said. All three bunker hubs require lead times of around 3-5 days for optimal coverage. 

Meanwhile, prompt VLSFO supply is tight in the South African ports of Durban and Richards Bay, a trader told ENGINE. Lead times of 7-10 days are advised for the grade in both ports. LSMGO is still dry in Durban, the trader added.

Brent

The front-month ICE Brent contract has gained $1.38/bbl higher on the day, to trade at $71.30/bbl at 17.00 SGT (09.00 GMT).

Upward pressure:

Geopolitical tensions brewing in the Middle East have once again pushed Brent crude’s price above the $70/bbl mark.

Earlier this week, the Donald Trump-led US administration launched a major military operation against the Yemen-based Houthi militants, in response to the ongoing maritime attacks that have disrupted vessel movements in the crucial Red Sea shipping corridor.

The US President has further warned that Iran would be held accountable for any attacks carried out by the rebel group. “The US continues to pile further pressure on Iran, with President Trump pressuring it to rein in support for Yemen’s Houthis rebels,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Brent’s price also found support from declining US gasoline and distillate stockpiles that helped offset fears of weak demand growth. “US gasoline inventories have fallen for three consecutive weeks. They’re now the lowest since early January,” two analysts from ING Bank said.

Downward pressure:

Brent’s price felt some downward pressure after the US Energy Information Administration (EIA) reported a small rise in US crude stocks.

Commercial US crude oil inventories increased by 1.7 million bbls to touch 437 million bbls for the week ending 14 March, according to data from the EIA.

A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent’s price.

By Manjula Nair and Aparupa Mazumder

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