European and African bunker benchmarks have surged, and congestion at Gibraltar has eased.

IMAGE: Oil refinery and storage tanks in the Port of Rotterdam, Netherlands. Getty Images

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

• VLSFO prices up in Durban ($18/mt), Gibraltar ($10/mt) and Rotterdam ($8/mt)
• LSMGO prices up in Gibraltar ($17/mt) and Rotterdam ($8/mt)
• HSFO prices up in Gibraltar ($16/mt) and Rotterdam ($4/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $33 at $284/mt

Prices at Rotterdam, Gibraltar and Durban have swung upwards at the beginning of this week, recording gains for all fuels grades. This has widened Gibraltar's premiums over Rotterdam for all grades.

Rotterdam’s B30 VLSFO price has recorded a significant rise of $33/mt over the weekend.

Availability of all grades is good in Germany's Hamburg, with lead times of 3-5 days advised, a trader told ENGINE.

In Spain’s Barcelona, HSFO and LSMGO grades are readily available, while VLSFO supply remains tight.

In Piraeus, prompt availability is tight for all grades, according to a trader.

Congestion has eased in Gibraltar, with only three vessels awaiting bunkers today, considerably lower than 15 vessels on Friday. Some suppliers at the port are running 4-24 hours behind schedule. Limited availability of barges in Gibraltar has been the main cause of the hold-up.

Wind gusts of up to 25 knots are forecast to hit Algeciras today, which could complicate bunker deliveries. Suppliers at the port are running 2-12 hours behind schedule, according to MH Bland.

Bunkering operations continue as normal at the port of Tenerife and off Malta.

Brent

The front-month ICE Brent contract has gained by $1.45/bbl on the day from Friday, to trade at $66.55/bbl at 09.00 GMT.

Upward pressure:

Oil prices have gained momentum as the global oil market's focus has now shifted to US-China trade talks set to commence in London later today.

Last week, a phone call held between US President Donald Trump and Chinese counterpart Xi Jinping led to a “very positive conclusion,” according to media reports. The news has boosted oil demand growth sentiment in the two top oil consumers.

“The US President and the Chinese President agreed to continue trade discussions in order to address issues related to tariffs and rare earth minerals,” Price Futures Group’s senior market analyst Phil Flynn remarked. “It will more than likely would lead to a resumption of oil imports into China from the United States,” he added.

On the supply side, Canadian wildfires in recent weeks have caused operational hurdles for oil production, pushing Brent’s price higher. Canadian wildfires typically occur between May and September.

Downward pressure:

US drilling activity has continued to decline amid the broader weakness in oil prices.

The total number of rigs drilling for crude oil in the US declined by nine to 442 units last week, according to Baker Hughes.

Lower drilling activity can indicate a slowdown in oil demand, market analysts said. This week’s data marked the sixth consecutive week of decline, two analysts from ING Bank noted.

“In the US market, drilling activity continues to slow,” the analysts said, marking the “longest period of declines since mid-2023.”

By Samantha Shaji and Aparupa Mazumder

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