Fuel prices in European and African ports have mostly declined, and LSMGO availability is tight in Istanbul.

IMAGE: Aerial view of container port and ship in Istanbul Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($10/mt), and down in Gibraltar and Rotterdam ($4/mt)
• LSMGO prices down in Rotterdam ($14/mt) and Gibraltar ($4/mt)
• HSFO prices down in Durban ($9/mt), Gibraltar and Rotterdam ($2/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $3/mt to $248/mt

Durban’s VLSFO price has defied the general downward trend, recording the highest increase of all grades in the three key ports in the past session.

Combining this with a falling HSFO price, Durban's Hi5 spread has widened to $87/mt from yesterday’s $68/mt.

Rotterdam's LSMGO price has fallen and its discount to Gibraltar has widened to $65/mt.

Prompt delivery of conventional fuels is tight across the Gibraltar Strait ports. Lead times of 5-7 days are recommended for VLSFO and LSMGO, while 8-10 days are advised for HSFO.

There are two vessels awaiting bunkers in Gibraltar today, according to port agent MH Bland, due to lack of space and a barge not being bunker-ready. All suppliers in the port are running on schedule.

Prompt supply of LSMGO is a bit tight in Istanbul, and buyers are advised to enquire about stems with at least five days of lead time to get offers from a good selection of suppliers, a trader said.

Brent

The front-month ICE Brent contract has moved $0.31/bbl higher on the day, to trade at $66.19/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has gained after Ukrainian drones hit a Russian oil refinery located in Volgograd.

The falling drone debris caused an oil spill at the refinery, which subsequently caught fire, Volgograd region’s governor Andrey Bocharov said.

The oil refinery is owned by Russia’s biggest energy firm Lukoil, according to a Bloomberg report. It has a refining capacity of 300,000 b/d, said VANDA Insights’ founder Vandana Hari.

“Crude oil prices edged higher, recouping some of the losses recorded earlier this week as traders take stock of the geopolitical landscape,” remarked ANZ Bank’s senior commodity analyst Daniel Hynes.

Downward pressure:

Brent’s price has felt some downward pressure amid uncertainty ahead of today’s highly anticipated meeting between US and Russian Presidents Donald Trump and Vladimir Putin.

If successful, the meeting could secure a US-brokered ceasefire between Moscow and Kyiv – a goal the US President has pursued since the start of his second term – and potentially lead to the lifting of global sanctions on Russian energy.

“Hopes are high that Friday’s meeting between Presidents Putin and Trump might remove much of the sanction risk hanging over the market,” two analysts from ING Bank said.

By Samantha Shaji and Aparupa Mazumder

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