Bunker benchmarks in European and African ports have mostly moved upwards.

IMAGES: Nieuwe Maas and Erasmus Bridge in Rotterdam. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($3/mt) and Gibraltar ($2/mt), and down in Durban ($5/mt)
• LSMGO prices up in Rotterdam ($11/mt) and Gibraltar ($5/mt)
• HSFO prices up in Durban ($11/mt), Rotterdam ($5/mt) and Gibraltar ($2/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $14 at $238/mt

According to Insights Global data, the ARA’s fuel oil stocks are about 31% lower than the same period last year. Prompt bunker supply remains tight in the region, according to a trader. Recommended lead times for VLSFO and LSMGO have narrowed to 7-8 days, while HSFO requires 8-9 days.

Durban’s VLSFO price has dropped by $5/mt. It is the only benchmark to decline among the key ports of Rotterdam, Durban and Gibraltar. Meanwhile, the port's HSFO price has risen by $11/mt. As a result of this, Durban’s Hi5 spread has narrowed by $16/mt, to $31/mt now.

No congestion has been reported in Gibraltar today, according to port agent MH Bland. One supplier continues to run 6-12 hours behind schedule, it said.

In Istanbul, prompt supplies of HSFO, ULSFO and LSMGO are readily available, according to a trader. VLSFO remains tight. Periods of rough weather could disrupt some operations between 20-26 June, according to a trader.

In Port Louis, HSFO availability is very tight, said a trader. VLSFO and LSMGO deliveries require lead times of 7-10 days.

Brent

The front-month ICE Brent contract has gained by $0.15/bbl on the day, to trade at $77.08/bbl at 09.00 GMT.

Upward pressure:

Oil market participants remain on edge as the Israel-Iran conflict has entered its second week, with both countries continuing to exchange airstrikes on critical infrastructures.

Israel has struck more of Iran’s nuclear sites and warned its attacks could bring down the Islamic Republic’s government, according to media reports. The news has supported Brent crude’s upward move.

“Satellite images also show that Iran is racing to get its oil out, filling storage tanks and sending as much onto the global market as it can,” ANZ Bank’s senior commodity analyst Daniel Hynes remarked.

Market analysts fear that Iran may retaliate by disrupting oil flows through critical chokepoints including the Strait of Hormuz and the Bab al-Mandab Strait in the Red Sea.

“This could trigger action by Israel’s allies, including stricter sanctions on Iran. Energy export infrastructure in Iran and other regional states could be targeted,” Hynes added.

Downward pressure:

US President Donald Trump said he would take up to two weeks to decide on any potential US military action against Iran, US press secretary Karoline Leavitt said yesterday.

There is a “substantial chance” of negotiations with Tehran, Leavitt quoted Trump as saying. This news has eased some supply concerns in the market, as it has re-opened window for a US-Iran nuclear deal.

This news has capped some of Brent’s price gains, “reducing speculation that the US is planning to imminently join Israel in attacking Iran’s nuclear facilities,” Hynes added.

By Samantha Shaji and Aparupa Mazumder

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