Bunker benchmarks in European and African ports have moved in mixed directions, and VLSFO and HSFO supply is stable in Durban.

IMAGE: Aerial view of Durban port landscape. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($2/mt), unchanged in Gibraltar, and down in Durban ($9/mt)
• LSMGO prices up in Rotterdam ($5/mt) and Gibraltar ($4/mt)
• HSFO prices up in Gibraltar ($4/mt) and Durban ($3/mt), and down in Rotterdam ($1/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $23/mt to $261/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $4/mt to $330/mt

Durban’s VLSFO price decline combined with its HSFO price inching upwards has narrowed the port’s Hi5 spread by $12/mt to $74/mt. The port's VLSFO price premiums over Gibraltar and Rotterdam have also declined by $9/mt and $11/mt, to $98/mt and $132/mt, respectively.

Wind gusts of more than 25 knots and waves over 2.5 meters are forecast at Durban on 30 August, which could complicate bunkering operations at the port.

In South Africa, VLSFO and LSMGO supplies are normal in Durban, while LSMGO is still unavailable, a trader said. VLSFO is easily available at neighbouring Richards Bay, the trader added.

As for ARA, conventional fuels are readily available, according to a trader.

Rotterdam’s B30-VLSFO price has jumped by $25/mt to $730/mt, considerably more than Gibraltar where the blend has gained $4/mt to $833/mt. This has narrowed Gibraltar’s price premium to $103/mt, from $124/mt yesterday.

Brent

The front-month ICE Brent contract has gained by $0.62/bbl on the day, to trade at $67.57/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has shed the previous day’s losses after the US Energy Information Administration (EIA) reported a drawdown in US crude stocks.

Commercial US crude oil inventories have dropped by 2.4 million bbls to touch 418 million bbls for the week ending 22 August, according to data from the EIA.

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

“[Brent] crude futures found support… from the Energy Information Administration report, which showed sizeable inventory declines across crude and refined products,” remarked VANDA Insights’ founder Vandana Hari.

Downward pressure:

Brent’s price gains were capped after US tariffs on imports of Indian goods came into effect yesterday.

US President Donald Trump has imposed 25% secondary tariffs against India, taking the total levy on US imports from India to 50%.

New Delhi currently faces tariffs on all exports to the US because of its continued purchases of Russian crude oil, according to market analysts.

“US tariffs on imports of Indian goods rose to 50% on Wednesday to punish the exporter for buying Russian crude,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

By Nachiket Tekawade and Aparupa Mazumder

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