Bunker benchmarks in European and African ports have fallen over the weekend, with several weather disruptions expected this week.  

IMAGE: Above view of Durban Harbour, South Africa. Getty Images

Changes on the day from Friday, to 09.00 GMT today:

• VLSFO prices down in Durban ($14/mt), Gibraltar ($9/mt) and Rotterdam ($8/mt)
• LSMGO prices down in Rotterdam and Gibraltar ($9/mt)
• HSFO prices down in Durban ($9/mt), Rotterdam ($7/mt) and Gibraltar ($6/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $15/mt to $228/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $3/mt to $300/mt

Fuel prices in Rotterdam, Gibraltar and Durban have fallen over the weekend, reflecting the fall in Brent futures.

Gibraltar’s premium over Rotterdam for B30-VLSFO has widened by $17/mt to $100/mt, driven by a $23/mt price drop in Rotterdam.

Ten vessels are currently waiting for bunkers at Gibraltar due to limited barge availability, according to port agent MH Bland.

Bunker supply remains good in Istanbul and off Malta, while VLSFO availability remains tight in the Greek port of Piraeus.

Weather-related disruptions are expected at several European and African ports this week.

Algeciras is forecast to see wind gusts of up to 27 knots today, which could impact bunkering operations, MH Bland said.

Sources also predict potential disruptions at Istanbul between Wednesday and Friday, and off Malta on Saturday. Skaw and Gothenburg in northern Europe may also see disruptions toward the weekend.

In Africa, bunker operations at Lome, Walvis Bay and Port Louis are also expected to be affected this week due to rough weather conditions, the sources added.

Brent
The front-month ICE Brent contract has declined by $1.13/bbl on the day from Friday, to trade at $68.91/bbl at 09.00 GMT.

Upward pressure:

Oil has retained some ground after official drilling figures showed a decline in US oil rigs. The total number of oil rigs fell by two over the week to 422, according to Baker Hughes.

“Despite oil prices having been more stable in recent weeks, the US oil rig count continues to fall,” two analysts from ING Bank noted.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

In a tight market, any signal of reduced future supply can put upward pressure on Brent’s price.

“This is the 12th consecutive week of declines, taking the cumulative decline to 53 over this period,” said ING analysts.

Downward pressure:

Brent’s price has moved lower as market participants showed little reaction to the EU’s latest sanction package against Russia.

Last week, the European Union (EU) adopted the 18th package of economic sanctions against Russia, aimed at limiting oil revenues flowing to its war chest.

The EU has targeted 105 vessels that are allegedly a part of the Russia's shadow fleet used to circumvent the price caps set on Russian crude and oil products. It has also lowered the oil price cap for Russian crude from $60/bbl to $47.60/bbl.

“Oil barely blinked at the EU’s latest attempt to tighten the screws on Russian energy,” said SPI Asset Management managing partner Stephen Innes.

The sanctions will come into force on 3 September.

By Nachiket Tekawade and Aparupa Mazumder

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