Bunker benchmarks in Europe and Africa have plunged in the past session, and bunker operations Gibraltar still faces congestion.

PHOTO: A large container ship moored in a commercial dock in Rotterdam. Getty Images

Changes on the day to 07.00 GMT today:

• VLSFO down in Durban ($45/mt), Rotterdam ($33/mt) and Gibraltar ($32/mt)
• LSMGO prices down in Rotterdam ($42/mt) and Gibraltar ($31/mt)
• HSFO prices down in Gibraltar ($28/mt) and Rotterdam ($25/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $66/mt to $250/mt

Prices in the three ports have recorded steep declines across all grades, tracking Brent's downward movement.

Hi5 spreads in Rotterdam and Gibraltar have narrowed in the last session, by $8/mt and $4/mt, respectively.

At $42/mt, Rotterdam's LSMGO price fall was one of the steepest in the past session. This can partially be attributed to a lower-priced 50-150 mt LSMGO stem fixed at $616/mt.

Gibraltar's VLSFO price premium over Rotterdam is roughly steady at $32/mt.

Gibraltar, Algeciras and Ceuta are completely operational for bunkering. Gibraltar and Algeciras have slight congestion and delays, according to port agent MH Bland. Today, eight vessels are waiting to bunker in Gibraltar, down from nine yesterday, the agent said.

Prompt supply is tight in the Las Palmas, a trader said. Lead times of 12-14 days are needed for all three grades.

Brent

The front-month ICE Brent contract has declined by $0.41/bbl on the day, to trade at $61.24/bbl at 07.00 GMT.

Upward pressure:

Brent crude’s price got little support after the American Petroleum Institute (API) reported a drop in US crude stocks.

Commercial US crude oil inventories fell by 1.06 million bbls in the week ending 4 April, according to the API estimates.

A decline in US crude stocks can indicate oil demand growth and lend some support to Brent's price, according to market analysts.

The broadly followed US government data on crude stockpiles from the US Energy Information Administration (EIA) is due later today.

Downward pressure:

Brent crude’s downward spiral can be attributed to the escalating trade tensions between the two largest oil consumers of the world – the US and China.

President Donald Trump-led US administration has hit back at China with a 104% tariff, after Beijing imposed a 34% levy on all US imports last week in retaliation to US tariffs announced on 2 April.

“The [US] administration has reportedly been inundated with calls from countries looking to strike a deal on US tariffs,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “Beijing responded earlier that its [it is] prepared to “fight to the end” via retaliatory trade measures,” Hynes added.

The news has dragged Brent’s price to a four-year low, according to market analysts. “Risk of further escalation in trade tensions between the US and China poses increased downside risks to the commodities complex,” two analysts from ING Bank remarked.

By Samantha Shaji and Aparupa Mazumder

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