Bunker prices continue to inch upwards in European and African ports, and LSMGO availability in Maputo is tight.

IMAGE: Bulk carrier docked in Maputo, Mozambique. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($8/mt), Durban ($5/mt) and Rotterdam ($2/mt)
• LSMGO prices up in Gibraltar ($11/mt) and Rotterdam ($6/mt)
• HSFO prices up in Gibraltar ($6/mt), Durban ($5/mt) and Rotterdam ($2/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $17/mt to $252/mt

Rotterdam’s Hi5 spread has held steady in the past session, while its B30-VLSFO price has gained.

Availability of fuel grades is still tight in Gibraltar Strait ports, according to a trader. Lead times of 8-9 days are recommended for HSFO and LSMGO, and 10-12 days for VLSFO.

Gibraltar’s LSMGO price has increased by $11/mt in the past session, widening its premium over Rotterdam to $75/mt.

Three vessels await bunkers in Gibraltar today, according to MH Bland. One supplier is running 3-6 hours behind schedule.

Bunker operations continue to be suspended in Huelva, according to MH Bland. Bunkering is only possible by truck at the public jetty, according to a source.

Bunker availability is good in Mozambique's Nacala, according to a source. VLSFO is also readily available in Maputo, while LSMGO is tight.

Brent

The front-month ICE Brent contract has gained by $1.24/bbl on the day, to trade at $68.63/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has gained on renewed geopolitical tensions in the Middle East. Iran has suspended cooperation with the International Atomic Energy Agency (IAEA) – a United Nations' nuclear watchdog.

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

Additionally, the US has reached a trade deal with Vietnam and will impose 20% tariffs on some of the country’s exports.

“The risk-on tone triggered by the Vietnam trade deal helped boost sentiment across the energy complex,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

The set tariff rate is much lower than previously decided, market analysts said.

“Brent crude oil rose… as investors priced in tentative optimism that more deals will be reached ahead of the 9 July deadline,” Hynes said.

Downward pressure:

Brent’s price gains were capped after the US Energy Information Administration (EIA) reported a surge in US crude stocks.

Commercial US crude oil inventories have surged by 3.8 million bbls to touch 419 million bbls for the week ending 27 June, according to data from the EIA.

“The increase was the largest in three months,” Hynes said.

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

“The build was driven by a large decline in US crude oil exports,” two analysts from ING Bank said.

By Samantha Shaji and Aparupa Mazumder

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