Bunker benchmarks in European and African ports have swung upwards, and suppliers in Algeciras are running behind schedule.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($15/mt), Gibraltar ($13/mt) and Rotterdam ($10/mt)
• LSMGO prices up in Rotterdam ($18/mt) and Gibraltar ($17/mt)
• HSFO prices up in Rotterdam and Durban ($12/mt) and Gibraltar ($9/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $19 at $246/mt

Prices across Rotterdam, Durban and Gibraltar have recorded significant gains in the past session, tracking Brent’s upward movement.

Hi5 spreads in Durban and Gibraltar have widened to $30/mt and $58/mt respectively, as VLSFO prices in these ports have increased more than their HSFO benchmarks.

However, Rotterdam's Hi5 spread has minimally narrowed as its HSFO price has risen more than its VLSFO price.

HSFO and VLSFO grades are readily available in the Gibraltar Strait ports, said a trader, while LSMGO supply is tight.

Three vessels are awaiting bunkers in Gibraltar today, according to port agent MH Bland. Some suppliers are running behind schedule by about 2-6 hours, the port agent added.

At Algeciras, suppliers continue to be delayed by about 2-12 hours, MH Bland noted.

Ceuta currently has a backlog of three vessels awaiting bunkers at the anchorage and is expecting eight more vessels to arrive for bunkers today, according to Jose Salama & Co. Suppliers at the port are running on schedule. Wind gusts of up to 23 knots are expected to lash Ceuta today, according to MH Bland.

Disruption due to bad weather conditions is forecast in Istanbul for tomorrow, according to a trader. Prompt supplies of ULSFO and LSMGO are readily available at the port, with lead times of just 1-2 days advised. Meanwhile, HSFO and VLSFO availability is subject to enquiry.

Brent

The front-month ICE Brent contract has surged by $2.20/bbl on the day, to trade at $69.03/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has reversed the previous day’s losses to gain over $2/bbl as geopolitical tensions in the Middle East resurfaced.

The US government has ordered a partial evacuation of its embassy staff in Iraq due to rising security concerns in the Middle East, Reuters reports.

Besides, the United Kingdom Maritime Trade Operations (UKMTO) has advised caution to commercial vessels passing through the Persian Gulf, the Gulf of Oman and Straits of Hormuz. 

Both news come shortly after Iran threatened to strike US bases in the region if nuclear talks between the two countries fail, according to another Reuters report. US President Donald Trump has repeatedly threatened Iran with attacks if US-Iran nuclear talks don’t yield any positive outcome.

“Expectations of a new US-Iran nuclear [deal] are slowly evaporating. President Trump said he’s less confident about whether he can convince Tehran to agree on shutting down its nuclear program,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Downward pressure:

Rising OPEC+ crude oil output in recent months has put some downward pressure on Brent’s price.

The coalition agreed to collectively increase their supply by 411,000 b/d in July, compared to June’s production levels. It’s leader Saudi Arabia wants to increase oil supply to regain market share, according to market analysts.

With the latest round of output hike, OPEC+ will have increased supply by about 1.38 million b/d in the first four months of the phase out plan, "or 64% of the 2.2mb/d [2.2 million b/d] in voluntary production cuts,” Hynes said.

By Samantha Shaji and Aparupa Mazumder

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