Bunker benchmarks in European and African ports have risen, and congestion has worsened in Gibraltar.

IMAGE: View from the Rock of Gibraltar, UK to Algeciras, Spain. Getty Images

Changes on the day from Friday, to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($11/mt), Durban ($9/mt) and Rotterdam ($8/mt)
• LSMGO prices up in Gibraltar ($14/mt) and Rotterdam ($2/mt)
• HSFO prices up in Durban ($13/mt), Gibraltar ($12/mt) and Rotterdam ($7/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $7/mt to $222/mt

Bunker prices across all grades have risen in both Gibraltar and Rotterdam. A steeper rise in Gibraltar's bunker benchmarks has widened its premiums for all conventional fuels over Rotterdam.

The ARA’s independently held fuel oil stocks have climbed 2% higher in May so far, according to Insights Global data. The region has imported 150,000 b/d of fuel oil and has exported 202,000 b/d of fuel oil so far this month, according to data from cargo tracker Vortexa.

Gibraltar continues to face congestion, with 12 vessels awaiting bunkers today due to limited barge availability and a lack of space for vessels, according to port agent MH Bland. Two suppliers are reporting delays of 4-8 hours.

Suppliers in Algeciras are running 12-24 hours behind schedule, the port agent said.

The port of Ceuta is expecting five vessels to arrive for bunkers today and there are no vessels awaiting bunkers, according to shipping agent Jose Salama & Co.

Off Malta, bunkering operations are being carried out in Area 4, with some delays, MH Bland said. A trader also mentioned that rough weather conditions may cause disruptions on 27 May.

Brent

The front-month ICE Brent contract has gained by $1.11/bbl on the day from Friday, to trade at $65.16/bbl at 09.00 GMT.

Upward pressure:

Oil prices have gained over the weekend amid diminishing prospects of a US-Iran nuclear deal.

Both nations concluded a fifth round of talks last week, that showed “some but not conclusive progress” according to media reports citing Iran’s foreign minister Abbas Araghchi.

Tehran has not agreed to stop its nuclear enrichment program, Iran's foreign ministry spokesperson Esmail Baghaei said, as quoted by Reuters, adding that no timeline has been set for the sixth round of talks with Washington.

The agreement could potentially lead the US administration to lift some sanctions on Iranian oil and bring more supply back to the market.

“There are concerns that the Trump administration may tighten sanctions on Iran to force it to drop its nuclear ambitions,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Oil investors' focus is now shifting toward concerns over excess supply as OPEC+ prepares to meet again on 1 June.

“We’re likely to hear lots of noise this week ahead of the OPEC+ meeting on Sunday, 1 June, where the group will decide on output policy for July,” two analysts from ING Bank said.

Market analysts expect the Saudi Arabia-led group to increase output by another 411,000 b/d in July – the third time in a row.

“This should keep the market well supplied over the second half of this year,” the two analysts added.

By Samantha Shaji and Aparupa Mazumder

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