Bunker benchmarks in Europe and Africa have moved in mixed directions in the past session, and suppliers have been running further behind schedule in Algeciras this week.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($12/mt) and Durban ($3/mt), and down in Gibraltar ($1/mt)
• LSMGO prices up in Rotterdam ($17/mt) and Gibraltar ($13/mt)
• HSFO prices up in Rotterdam ($14/mt), Durban ($13/mt) and Gibraltar ($10/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $1/mt to $234/mt

Prices have gained for most conventional fuels in Rotterdam, Gibraltar and Durban, barring VLSFO in Gibraltar which has recorded a minimal loss.

Prompt availability of bunkers remains tight in the ARA hub, a trader told ENGINE. Lead times have increased to 7-8 days for all grades.

Congestion in Gibraltar has eased slightly, with eight vessels awaiting bunkers, down from yesterday’s nine vessels, according to port agent MH Bland. One supplier’s deliveries are about 4-8 hours delayed while another is running more than 24 hours behind schedule, the port agent added.

Consistent with yesterday, suppliers in Algeciras are running 16-72 hours behind schedule, according to the port agent. This comes despite bunker operations continuing in the Inner Anchorage area, as well as at the Delta anchorage and OPL.

In Ceuta, 14 vessels are due to arrive for bunkers today and no delays are expected, according to shipping agent Jose Salama & Co.

In the Canary Islands port of Las Palmas, some suppliers are running about 6-8 hours behind schedule, according to MH Bland.

Piraeus is expected to face weather disruptions from tomorrow until Sunday, according to a trader. Weather conditions are expected negatively impact operations off Malta today as well.

Brent

The front-month ICE Brent contract has moved $1.44/bbl higher on the day, to trade at $65.64/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has gained over $1/bbl in the past session, after the US Court of International Trade blocked President Donald Trump’s “Liberation Day” tariffs, according to media reports.

“Oil prices are firmer this morning after a US court blocked President Trump’s 'Liberation Day' tariffs,” two analysts from ING Bank noted.

Market participants are also looking out for potential new US sanctions on Russian and Iranian crude exports.

Earlier this week, President Trump said that his Russian counterpart, Vladimir Putin, was “playing with fire,” after Moscow intensified airstrikes on Ukrainian cities. Meanwhile, a nuclear agreement between Washington and Tehran seems to be increasingly off the table after the fifth round of talks between delegates from both countries failed to yield any progress.

“Oil markets strengthened yesterday as sanction risks against Russia increase, while the market appears to be losing hope that we’ll see a nuclear deal between the US and Iran,” the ING Bank analysts said.

Downward pressure:

This week’s biggest news will be the upcoming OPEC+ meeting where the group will discuss production quotas for July.

A group of eight OPEC+ members are currently unwinding 2.2 million b/d of output cuts.

“We're assuming the group will agree on another large supply increase of 411k b/d,” ING Bank analysts said.

The Saudi Arabia-led coalition is set to hold an online meeting on Saturday, a day earlier than previously scheduled.

“We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,” the analysts added.

By Samantha Shaji and Aparupa Mazumder

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