Bunker benchmarks in European and African ports have gained, while Gibraltar faces slight congestion.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($12/mt), Gibraltar and Rotterdam ($10/mt)
• LSMGO prices up in Gibraltar and Rotterdam ($16/mt)
• HSFO prices up in Gibraltar ($15/mt) and Rotterdam ($4/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $29 at $231/mt

Prices across Rotterdam, Durban and Gibraltar have swung upwards in the past session.

Gibraltar's HSFO premium over Rotterdam has widened by $11/mt to $42/mt now. The port's VLSFO and LSMGO premiums over Rotterdam remain steady.

Gibraltar’s LSMGO price has risen to a slight premium over the grade’s price in Las Palmas.

Two vessels await bunkers at Gibraltar today, according to port agent MH Bland. One supplier is running 6-12 hours behind schedule. Weather conditions at the port are expected to remain suitable for bunkering today.

Suppliers at Algeciras are running anywhere from two to 12 hours behind schedule, according to MH Bland. Bunkering operations are continuing at the Inner Anchorage, at the Delta anchorage and at OPL.

VLSFO supply is limited in the Greek port of Piraeus, and lead times of 5-7 days are advised for LSMGO, according to a trader. The trader also added that ULSFO and HSFO grades are available but lead times will be offered upon enquiry.

In Istanbul, prompt supplies of ULSFO and LSMGO are readily available with lead times of just 1-2 days. Meanwhile, HSFO and VLSFO availability is subject to enquiry.

Brent

The front-month ICE Brent contract has gained by $0.65/bbl on the day, to trade at $74.28/bbl at 09.00 GMT.

Upward pressure:

Brent futures have moved higher amid escalating geopolitical tensions in the Middle East.

The ongoing feud between Israel and Iran has threatened oil supply in the region, adding risk premiums to oil prices, according to market analysts.

“The nature of Israel and Iran's attacks on each other over the weekend suggests [that] risks to the oil market have escalated in this latest phase of the Middle East conflict,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

On Monday, US President Donald Trump called for the evacuation of Tehran amid growing fears of further escalation of the conflict in the region. His comments have renewed volatility in the broader financial markets, two analysts from ING Bank said.

The conflict has reignited concerns over the use of key oil transit chokepoints in the region, including the Strait of Hormuz, the Gulf of Aden and the Bab al-Mandab Strait.

“The market remains on edge with the biggest fear a potential blockage of the Strait of Hormuz, which would lead prices to soar further,” the analysts said.

Downward pressure:

Brent’s price has felt some downward pressure due to growing OPEC+ output.

The total crude oil production by OPEC+ members averaged 41.23 million b/d last month, about 180,000 b/d higher than in April, the group said in its latest oil market report.

Oil production by OPEC+’s de-facto leader Saudi Arabia, increased by 177,000 b/d in May to 9.18 million b/d, while the UAE increased its output by 27,000 b/d to about 3 million b/d last month.

Earlier this month, the Vienna-headquartered coalition agreed to increase output by 411,000 b/d for July, maintaining the same monthly increase it has implemented in the past three months.

By Samantha Shaji and Aparupa Mazumder

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