European and African bunker benchmarks have moved in mixed directions.

IMAGE: Aerial view of Durban port landscape. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Rotterdam and Gibraltar ($1/mt)
• LSMGO prices up in Gibraltar ($1/mt), and down in Rotterdam ($1/mt)
• HSFO prices unchanged in Gibraltar, and down in Durban ($5/mt) and Rotterdam ($1/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $18 at $251/mt

Bunker prices in Rotterdam, Durban and Gibraltar have moved in a narrow range in the past session, tracking Brent.

Gothenburg and off Skaw continue to offer good bunker availability of all grades, with 10 days recommended as lead times, according to a trader.

Bunker availability remains good in Walvis Bay, with lead times of 3-6 days, consistent with the past few weeks.

Though LSMGO is still dry, availability of other fuels if good at Durban, with lead times of 2-4 days recommended.

Like yesterday, 15 vessels continue to await bunkers at Gibraltar, owing to limited barge availability and a lack of space for vessels, port agent MH Bland said.

The weather in Algeciras is currently suitable for bunkering, however, the port may face wind gusts of up to 20 knots on Sunday, according to MH Bland.

In Ceuta, four vessels are expected to arrive for bunkers today and the minor congestion at the port has eased up, according to shipping agent Jose Salama & Co.

Brent

The front-month ICE Brent contract has remained unchanged on the day, to trade at $65.10/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has gained some support following reports of fresh talks between US President Donald Trump and Chinese counterpart Xi Jinping.

The news has eased some economic concerns, supporting oil demand growth sentiment in the world’s two top oil consuming nations, analysts said. Both countries have resumed trade talks, Reuters reports.

Brent has found support “from optimism fuelled by a phone call between Presidents Donald Trump and Xi Jinping,” VANDA Insights’ founder and analyst Vandana Hari said.

“The two leaders agreed to resume trade negotiations, prompting relief after a recent escalation in tensions,” she added.

Downward pressure:

The prospect of further OPEC+ supply hikes continues to dent oil market sentiment. 

Last week, eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to collectively increase their supply by 411,000 b/d in July, compared to June’s production levels.

The coalition’s leader Saudi Arabia wants to increase oil supply to regain market share, according to media reports.

“We suspect OPEC is taking the opportunity of stronger seasonal demand and a lack of response from non-OPEC producers to regain market share,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “What is not clear is whether that will extend into the second half of the year,” he added.

By Samantha Shaji and Aparupa Mazumder

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