European and African bunker benchmarks have moved downward, and VLSFO supply remains tight in Durban.

IMAGE: Oil storage tanks in the oil and bunkering hub of Rotterdam, Netherlands. Getty Images

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices down in Durban ($24/mt), Rotterdam ($7/mt) and Gibraltar ($5/mt)
• LSMGO prices down in Gibraltar ($23/mt) and Rotterdam ($6/mt)
• HSFO prices down in Durban ($16/mt), Gibraltar ($9/mt) and Rotterdam ($5/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $59/mt to $216/mt

Prices of all grades have fallen across the three main ports amid muted demand over the Easter weekend, with Durban recording the steepest declines. The South African port's VLSFO supply remains tight, with recommended lead times of 7-10 days, according to a trader.

The decrease in prices across all grades in Rotterdam has been quite modest. The port's Hi5 spread has narrowed to $31/mt from $33/mt on Friday.

The ARA’s independently held fuel oil stocks have averaged 5% lower so far this month compared to March, according to Insights Global data.

All the Gibraltar Strait ports are fully functional and supplying bunkers after weeks of sporadic operation suspensions due to adverse weather conditions, according to MH Bland.

One vessel is currently waiting to receive bunkers in Gibraltar, while slight congestion is reported in Algeciras today. Across the straight in Ceuta, seven vessels are scheduled to arrive for bunkers today, according to shipping agent Jose Salama & Co.

Brent

The front-month ICE Brent contract has gained $0.11/bbl higher on the day from Thursday, to trade at $66.51/bbl at 09.00 GMT.

Upward pressure:

Brent’s price edged higher on the back of supply concerns.

OPEC’s second largest oil producer Iraq is set to reduce its oil exports by about 100,000 b/d to an average of 3.2 million b/d in May, Bloomberg reports.

The news has supported Brent’s price as pressure from the Saudi Arabia-led coalition to adhere to production targets continues to grow.

Iraq pledged to lower its oil exports as "it faces pressure to adhere to its OPEC+ production target,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Besides, OPEC+ announced last week that seven members will collectively reduce output by 4.6 million b/d through June 2026 under revised compensation plans to offset previous overproduction.

Downward pressure:

Brent’s price gains were capped following the long Easter weekend as escalating trade tensions between the US and China weighed on sentiments.

The US-China tariff battle has continued to intensify, after Beijing announced 125% tariff on US goods last week. China's latest tariff announcement follows US President Donald Trump's decision to hike duties on Chinese products to 145%, according to a Reuters report.

“[Oil] market participants took note of the worsening trade conflict between the US and China and continued recalibrated optimism over the two countries being able to resolve their trade conflict any time soon,” VANDA Insights’ founder and analyst Vandana Hari said.

By Samantha Shaji Aparupa Mazumder

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