Bunker benchmarks in European and African ports have tracked Brent’s downward movement, and strong congestion is reported in Gibraltar.

PHOTO: Cruise ship in the Port of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Durban ($42/mt), Gibraltar ($30/mt) and Rotterdam ($23/mt)
• LSMGO prices down in Rotterdam ($39/mt) and Gibraltar ($28/mt)
• HSFO prices down in Gibraltar ($34/mt) and Rotterdam ($23/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $15/mt to $234/mt
  

Following Brent's downward movement, prices for all grades in key European and African ports have declined in the past day.

HSFO and VLSFO prices have declined sharply in Gibraltar. A steeper fall in the port's HSFO price has widened its Hi5 spread by $4/mt to $43/mt.

Strong congestion is reported in Gibraltar today, with 12 vessels waiting to receive bunkers, according to MH Bland.

Durban's VLSFO price has also declined sharply. VLSFO supply is tight for prompt delivery in the South African ports of Durban and Richards Bay. Lead times of 7-10 days are advised for the grade in both ports, according to a trader.

Brent

The front-month ICE Brent contract has plummeted by $4.74/bbl on the day, to trade at $67.61/bbl at 09.00 GMT.

Upward pressure:

The US administration has continued to build pressure on major oil exporters such as Iran and Venezuela, warning of potentially tighter sanctions if its terms are not fulfilled. This has provided some upward thrust to Brent’s price this week. 

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

Last week, Trump threatened 25% tariffs on imports from countries purchasing Venezuelan oil and gas, amid rising tensions with President Nicolas Maduro's government, which Washington accuses of aggravating illegal immigration and criminal activity in the US.

Pressure also remains on Russia after Trump criticised Russian President Vladimir Putin’s latest remarks on Ukrainian counterpart Volodymyr Zelenskyy’s legitimacy in running the country and threatened to slap Moscow with more sanctions.

Downward pressure:

Brent’s price fell by nearly $5/bbl after OPEC+ surprised the global oil market with an unexpected supply boost.

Eight members of the group have pledged to increase supply by 411,000 b/d in May, as the coalition aims to gradually phase out its collective 2.2 million b/d cuts between April 2025 and June 2026.

These members had previously planned to increase supply by 135,000 b/d in May.

The news comes amid rising turmoil in global markets, already shaken by Trump’s tariff threats, which could spark a global trade war and in turn, curb demand growth, according to market analysts.

Brent’s price took a big hit “as a barrage of new tariffs raised concerns over global growth and the outlook for oil demand,” two analysts from ING Bank noted.

“It wasn’t just tariff concerns weighing on the market, but also OPEC+ announcing a surprise agreement to increase supply in May by more than expected,” they added.

By Samantha Shaji and Aparupa Mazumder

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