Bunker prices in European and African ports have inched upwards, and HSFO availability in Port Louis remains tight.

IMAGE: The Europoort area in the Port of Rotterdam. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($9/mt), Gibraltar ($6/mt) and Durban ($5/mt)
• LSMGO prices up in Rotterdam ($11/mt) and Gibraltar ($9/mt)
• HSFO prices up in Gibraltar ($14/mt), Durban ($9/mt) and Rotterdam ($6/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $25 to $235/mt

Prices of conventional fuels in Rotterdam, Gibraltar and Durban have gained for the first time this week, tracking Brent’s upward movement.

In the ARA hub, HSFO and VLSFO lead times have slightly reduced from last week to 6-8 days now, while LSMGO requires 5-6 days.

Gibraltar’s HSFO price has risen the most in the past session, surpassing the rise in its VLSFO benchmark. The price moves have narrowed the port's Hi5 spread by $12/mt to $66/mt now.

Congestion has eased in Gibraltar, according to MH Bland, with four vessels awaiting bunkers today, down from 10 vessels yesterday.

Suppliers at Algeciras continue to be 2-12 hours behind schedule, MH Bland said.

Bunker supply is good at the African ports of Walvis Bay, Lome and Luanda. At Port Louis, prompt supply for HSFO remains tight.

Brent

The front-month ICE Brent contract has gained by $0.61/bbl on the day, to trade at $67.39/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has moved higher as lingering geopolitical risks continue to influence market sentiment.

Last week, Iran halted access to the International Atomic Energy Agency (IAEA) for inspections. Iranian nuclear-safety regulators have also stopped taking calls from the UN watchdog, Bloomberg reports.

“The blackout raises the spectre that Iran is using silence as a way to obscure international understanding of the status of its nuclear program,” remarked ANZ Bank senior commodity strategist Daniel Hynes.

The news has prompted market speculation of a potential cold war-like standoff, with the US possibly intensifying oil sanctions on Tehran.

“President Trump said the US will be there unless Iran backs away from its nuclear program,” Hynes added.

Downward pressure:

Brent’s gains have been capped after the American Petroleum Institute (API) reported a surprise build in commercial US crude stocks.

US crude oil inventories rose by 680,000 bbls in the week ending 27 June, according to the API. Market analysts expected a draw of 2.26 million bbls.

The data was “bearish on balance with a modest build in crude,” said Vanda Insights founder Vandana Hari.

An increase in US crude stockpiles can signal weaker demand and can dampen Brent's price.

The closely followed official data from the US Energy Information Administration (EIA) is due for release later today.

By Samantha Shaji and Aparupa Mazumder

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