Bunker fuel prices in key European and African ports have slumped in the past session, while availability in the Gibraltar Strait remains tight.

IMAGE: The Port of Hamburg with the Elbe river. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Gibraltar ($13/mt), Durban ($12/mt) and Rotterdam ($9/mt)
• LSMGO prices down in Rotterdam ($12/mt) and Gibraltar ($5/mt)
• HSFO prices down in Durban ($12/mt), Rotterdam ($3/mt) and Gibraltar ($2/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $7/mt to $240/mt
• Gibraltar B30-VLSFO premium over VLSFO unchanged at $232/mt

Prices in Rotterdam, Gibraltar and Durban have decreased significantly in the past day, tracking a downward trend in Brent futures.

Hi5 spreads in Gibraltar and Rotterdam have narrowed by $11/mt and $6/mt, respectively, as VLSFO prices in both ports have fallen more sharply than HSFO prices. Equal declines in VLSFO and HSFO benchmarks in Durban kept its Hi5 spread unchanged at $47/mt.

A steeper decline in Durban’s HSFO price compared to Rotterdam and Gibraltar has narrowed its price premium over the two ports by $9/mt and $10/mt, to $127/mt and $91/mt, respectively.

Gibraltar’s B30-VLSFO price premium over Rotterdam has widened slightly to $8/mt.

Three ships are currently waiting for bunkers at Gibraltar, up from two yesterday, according to port agent MH Bland.

Prompt supply in the Gibraltar Strait remains tight, with recommended lead times of 8–9 days for HSFO and LSMGO, and 10–12 days for VLSFO.

Brent

The front-month ICE Brent contract has declined by $1.28/bbl on the day, to trade at $68.71/bbl at 09.00 GMT.

Upward pressure:

Rising geopolitical tensions in the Middle East and Houthi attacks on commercial vessels in the Red Sea have raised concerns of supply disruptions in the oil market.

US President Donald Trump said he has a “major statement to make on Russia on Monday” in a telephonic interview with media network NBC, without elaborating on his planned course of action.

“This could leave the market nervous over the potential for further sanctions on Russia,” ING’s head of commodity strategy, Warren Patterson said. Additional US sanctions on Russian crude could tighten the global oil market further and add upward pressure on prices.

Downward pressure:

OPEC members could be mulling a pause in further supply hikes from October, Daniel Hynes, senior commodity strategist at ANZ said.

“However, the market took the decision to subsequently pause any further increases as a sign that the market can’t handle any more oil amid weakening demand,” he explained.

The US Energy Information Administration (EIA) reported a 7.1 million barrels surge in US crude stockpiles for the week ending 4 July, adding further downward pressure on Brent’s price.

By Nachiket Tekawade and Konica Bhatt

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