Bunker Benchmarks have plunged in the past session, and prompt deliveries are strained in Rotterdam.

IMAGE: The Europoort area in the Port of Rotterdam. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Durban ($17/mt), Gibraltar ($13/mt) and Rotterdam ($10/mt)
• LSMGO prices down in Rotterdam ($31/mt) and Gibraltar ($29/mt)
• HSFO prices down in Rotterdam ($13/mt), Gibraltar and Durban ($12/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $10/mt to $232/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $5/mt to $251/mt

Prices of all fuel grades in Rotterdam, Gibraltar and Durban have slumped in the past session, tracking a sharp fall in Brent futures.

A lower-priced 50-150 mt LSMGO stem fixed at $700/mt in Rotterdam has contributed to drag the benchmark down.

In Gibraltar, three lower priced LSMGO stems fixed between $741/mt and $758/mt have put downward pressure on the port's benchmark.

LSMGO’s price premium over VLSFO has narrowed to $191/mt from $212/mt in Rotterdam, and to $203/mt from $219/mt in Gibraltar.

B30-VLSFO’s premium over VLSFO has narrowed twice as much in Rotterdam than in Gibraltar.

Availability of VLSFO, HSFO and LSMGO in the ARA hub is good, but securing prompt supplies can be difficult, a trader told ENGINE. Lead times of 5-7 days are advised for all grades.

Congestion has further increased in Gibraltar, with ten vessels waiting for bunkers, up from seven yesterday, and suppliers are running 4-8 hours behind schedule, according to port agent MH Bland.

Bunkering operations at Ceuta have resumed after rough weather forced a suspension in the previous day, the port agent added. Meanwhile, wind gusts of 27 knots are forecast in Algeciras today, which could impact operations.

Brent

The front-month ICE Brent contract has moved $1.72/bbl lower on the day, to trade at $71.31/bbl at 09.00 GMT.

Upward pressure:

US President Donald Trump has issued a fresh warning, targeting Indian imports of Russian crude. He has threatened to slap unspecified penalties for India’s continued purchases of Russian oil and military weapons.

Oil has found some support from “renewed supply disruptions following Trump’s threats this week to impose penalties on India for its energy purchases from Russia,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

The announcement has sparked concerns over a potential supply crunch in the oil market later this year.

“The Indian government has reportedly told state-owned oil refiners to draw up plans to switch away from Russian crude,” said VANDA Insights’ founder Vandana Hari.

Downward pressure:

Brent’s price has moved lower as market participants shifted focus on US import tariffs on trade partners set to come into effect from today.

Yesterday, Trump signed an executive order imposing tariffs ranging between 10-41% on US imports from several countries including Canada, India, Taiwan, China, etc., Reuters reports.

The tariffs come as a result of the failure to finalise trade agreements by the 1 August deadline.

If imposed, it could lead to trade disputes between the US and its major economic partners, according to market analysts.

“Renewed focus on the economic headwinds of higher US import tariffs globally prompted a retreat in Brent,” Hari added.

By Nachiket Tekawade and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online