Fuel prices in European and African ports have moved in varied directions, and HSFO availability off Walvis Bay is tight.

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($4/mt), Gibraltar ($2/mt), and down in Durban ($4/mt)
• LSMGO prices up in Rotterdam ($14/mt) and Gibraltar ($3/mt)
• HSFO prices up in Rotterdam ($1/mt), and down in Gibraltar and Durban ($1/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $3/mt to $255/mt

Prices of conventional fuels in Rotterdam, Gibraltar and Durban have moved in mixed directions in the past session, after a week of significant losses and small increases.

Rotterdam’s LSMGO price has increased by $14/mt in the past session, narrowing its discount to Gibraltar to $64/mt, from $75/mt yesterday.

Hi5 spreads in Rotterdam and Gibraltar have widened to $68/mt and $71/mt, respectively, while that in Durban has narrowed to $51/mt. Gibraltar's Hi5 spread has significantly increased in the past two months.

There are five vessels awaiting bunkers at Gibraltar today, up by two from yesterday according to port agent MH Bland. The port is forecast to experience wind gusts of up to 14 knots today.

Luanda’s VLSFO and LSGMO supply is good with lead times of 3-4 days advised for both grades, according to a trader.

HSFO prompt availability is tight off Walvis Bay. Lead times of 5-7 days are recommended for VLSFO and LSMGO, which is longer than the 3-6 days recommended over the past few weeks.

Brent

The front-month ICE Brent contract has moved $0.35/bbl lower on the day, to trade at $68.28/bbl at 09.00 GMT.

Upward pressure:

The US has announced fresh sanctions on Iranian oil exports, once again reiterating the Trump administration’s stance on driving the OPEC nation’s oil and petroleum products flow to zero. This news has supported Brent’s price today.

The sanctions include oil companies and Iran’s alleged shadow fleet vessels that help export crude oil produced in the oil-rich country.

“Crippling Iran’s oil industry, its top source of revenue, has been a key goal of the Trump administration’s 'maximum pressure' strategy,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

Notably, the effectiveness of these sanctions has been questioned, as China continues to buy Iranian oil, Hynes added.

Downward pressure:

Trading activity is subdued today, as US markets are closed for the Independence Day holiday.

Brent’s price has edged lower after Iran reaffirmed its commitment to nuclear non-proliferation treaty, Reuters reports.

“Tensions surrounding the Iran nuclear issue appeared to ease,” remarked VANDA Insights’ Vandana Hari.

Tehran’s commitment to nuclear non-proliferation comes as it prepares to restart nuclear talks with Washington, Axios reports. US Middle East envoy, Steven Witkoff, plans to meet with Iran’s foreign minister, Abbas Araghchi, in Oslo next week, the report adds.

“Crude oil prices fell amid reports of US-Iran nuclear talks,” Hynes said.

By Samantha Shaji and Aparupa Mazumder

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