Prompt bunker supply has improved in the ARA, and Rotterdam’s Hi5 spread has widened. 

Changes on the day to 09.00 GMT today:

• VLSFO up in Rotterdam ($1/mt), and down in Gibraltar and Durban ($1/mt)  
• LSMGO prices down in Rotterdam ($4/mt) and Gibraltar ($3/mt) 
• HSFO prices down in Gibraltar ($4/mt) and Rotterdam ($2/mt)  
• Rotterdam B30-VLSFO premium over VLSFO up by $24/mt to $257/mt

Rotterdam’s HSFO and LSMGO prices have both fallen by a moderate $4/mt in the past day. Two lower-priced prompt delivery stems, one each for HSFO and LSMGO, booked in the past day have contributed to the downward pressure on both the benchmarks. 

In contrast, Rotterdam’s VLSFO price has mostly held steady. This has widened the port’s Hi5 spread from $39/mt yesterday to $44/mt now. Bunker availability has improved in Rotterdam and the wider ARA hub, a trader told ENGINE. Suppliers can offer prompt delivery dates for all three grades with lead times reduced to 3-5 days. 

Meanwhile, prompt bunker supply is tight for ports in the Gibraltar Strait, a trader said. Lead times of 7-9 days are recommended across all three grades in Gibraltar and Algeciras. 

Off Malta, availability is fine across all three grades, a trader said. Lead times of 3-5 days are advised for optimal coverage from suppliers. Malta’s Hi5 spread has narrowed in the last two months and is currently around $13/mt, compared to $58/mt two months ago.

Brent

The front-month ICE Brent contract has lost $0.18/bbl on the day, to trade at $74.42/bbl at 09.00 GMT.

Upward pressure:

Supply-side issues in the global oil market have lent some support to Brent crude’s price.

Over the weekend, US President Donald Trump intensified pressure on Iran – one of the largest OPEC producers – to immediately come to a deal with Washington and abandon its pursuit of nuclear weapons.

Brent crude’s price gained after “he [Trump] threatened to attack the oil producer if it did not sign a deal renouncing nuclear weapons,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Besides, pressure remains on Russia after the US President slammed Russian President Vladimir Putin’s latest remarks on Ukrainian counterpart Volodymyr Zelenskyy’s legitimacy in running the country and threatened to further curb Moscow’s oil exports.

“For now, it appears to be just a threat to Russia and Iran,” two analysts from ING Bank said. “However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries,” they added.

Downward pressure:

Brent’s price lost the previous day’s gains as fears of a decline in demand growth escalated amid uncertainty surrounding Trump’s tariff plans.

Washington is likely to announce tariffs on all global trade partners later today, while tariffs on automobile imports are expected to kick in tomorrow. These tariffs threats have sparked concerns of a brewing global trade war that could dampen demand for commodities like oil, according to market analysts.

Brent crude’s price edged lower “as markets awaited US President Donald Trump unveiling his reciprocal tariffs plan [on trade partners] later in the day,” VANDA Insights’ founder and analyst Vandana Hari remarked.

Brent’s price felt more downward pressure after the American Petroleum Institute (API) reported a 6 million-bbl surge in US crude oil inventories.

A buildup in inventories typically signals weaker oil demand, which can drag Brent's price down.

By Manjula Nair and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online