Fuel prices at European and African ports have increased in the past day, and Mediterranean ports have good bunker availability.

IMAGE: Aerial view of a cargo ship in transit in Istanbul, Turkey. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($11/mt), Rotterdam ($10/mt) and Gibraltar ($5/mt)
• LSMGO prices up in Gibraltar ($10/mt) and Rotterdam ($7/mt) 
• HSFO prices up in Gibraltar ($9/mt), Durban ($8/mt) and Rotterdam ($7/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $13/mt to $283/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $5/mt to $255/mt

Conventional fuel prices in Rotterdam, Gibraltar and Durban have moved up in the past session, tracking brent's upward movement.

Conversely, Rotterdam’s B30-VLSFO price has dropped by $3/mt, widening the port's discount to Gibraltar's to $14/mt from yesterday's $1/mt.

Port congestion has intensified at Gibraltar, with 10 vessels awaiting bunkers due to limited space and barge unavailability, according to port agent MH Bland. Wind gusts of around 32 knots are forecast at the port on Friday, which might affect operations, the port agent added.

Availability of all fuel grades has improved at the Gibraltar Strait ports, with recommended lead times at 5-7 days, a trader said.

Weather-related disruptions are expected at Istanbul from 24-26 July, according to a source. Bad weather is also forecast off Malta between 26-28 July, the source added.

Brent

The front-month ICE Brent contract has gained by $0.57/bbl on the day, to trade at $69.07/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has moved higher on the back of demand-side optimism.

Commercial US crude oil inventories have declined by 3.2 million bbls to touch 419 million bbls for the week ending 18 July, according to data from the US Energy Information Administration (EIA).

A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

“US EIA report showing a weekly slump of 3.2 million barrels in crude inventories helped erase earlier intraday losses,” VANDA Insights’ noted Vandana Hari.

Besides, oil gained amid optimism over the ongoing US-EU trade talks that could boost oil demand growth.

“News emerged that the two sides were working towards a deal that would set a 15% tariff for most goods,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Rising output from the OPEC+ coalition has fuelled concerns of an impending oil surplus later this year, analysts say, pressuring market sentiment. This news has put downward pressure on Brent crude’s price in the recent days.

The Saudi Arabia-led alliance’s crude production averaged 41.56 million b/d last month, marking an increase of 349,000 b/d from May.

Meanwhile, eight members of the group have agreed to collectively increase their supply by 548,000 b/d in August, accelerating the group’s plan to boost crude production.

The planned production increase next month is four times higher than their original plan to unwind output cuts by 137,000 b/d each month between April 2025 and September 2026.

By Nachiket Tekawade and Aparupa Mazumder

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