Bunker benchmarks in European and African ports have moved in mixed directions in the past session, and weather disruptions are expected off Malta.

IMAGE: Aerial view of Durban Harbour, South Africa. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($2/mt), and down in Rotterdam ($11/mt) and Gibraltar ($5/mt)
• LSMGO prices down in Gibraltar ($7/mt) and Rotterdam ($6/mt)
• HSFO prices up in Gibraltar ($3/mt), and down in Durban and Rotterdam ($5/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $12/mt to $234/mt

Prices of all conventional fuels have fallen in Rotterdam in the past session. The port's VLSFO price has fallen by more than its HSFO price, to narrow the Hi5 spread by $6/mt to $39/mt.

Prompt availability of all grades is tight in Gibraltar, with lead times of 8-9 days, according to a trader.

Bunker congestion has eased in Gibraltar, with only six vessels awaiting bunkers today, down from 12 yesterday, according to port agent MH Bland. Some suppliers are delayed by 4-8 hours because of limited barge availability and a lack of space to bunker.

Suppliers in Algeciras are running 12-24 hours behind schedule, MH Bland says.

Eight vessels are expected to arrive in Ceuta for bunkers today, according to shipping agent Jose Salama & Co.

Rough weather conditions are expected to delay bunker deliveries off Malta, MH Bland says. Bunker Area 4 is currently operational.

Though LSMGO supply remains dry in Durban, prompt HSFO and VLSFO supply is good, according to a trader. A lead time of 2-4 days is recommended.

Brent

The front-month ICE Brent contract has declined by $0.33/bbl on the day, to trade at $64.83/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has found some support amid the slow progress of nuclear talks between the US and Iran, according to market analysts.

Delegates from both countries met for a fifth round of talks in Rome last week, “that yielded little progress,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The agreement was expected to get Tehran to agree to stop its nuclear enrichment program in return for Washington lifting its sanctions on Iranian oil.

“The expectations for these talks are not all that optimistic, despite both sides wanting to avoid a direct conflict,” Price Futures Group’s senior market analyst Phil Flynn remarked.

Downward pressure:

Expectations of higher OPEC+ output have dampened market sentiment, pushing Brent crude lower over the past few sessions.

The group will meet later this week to review supply quotas for its members and decide July production levels. Market analysts expect the Saudi Arabia-led coalition to increase output by another 411,000 b/d in July, for the third consecutive time.

“Any data showing a continued lack of adherence to production quotas will strengthen the resolve of Saudi Arabia to punish those members who refuse to cut their output,” Hynes said.

By Samantha Shaji and Aparupa Mazumder

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