Bunker benchmarks in European and African ports have moved in mixed directions over the weekend, and fuel demand remains steady in Gibraltar.

IMAGE: Aerial view of the Bay of Gibraltar. Getty Images

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

• VLSFO prices up in Gibraltar ($6/mt), unchanged in Durban, and down in Rotterdam ($4/mt)
• LSMGO prices down in Rotterdam ($3/mt) and Gibraltar ($1/mt)
• HSFO prices up in Gibraltar ($9/mt) and Durban ($6/mt), and unchanged in Rotterdam
• Rotterdam B30-VLSFO premium over VLSFO down by $5/mt to $262/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $10/mt to $331/mt

Gibraltar’s HSFO price has recorded the highest gain among the three ports, having risen to $450/mt, from $441/mt on Friday. That has widened its premium over Rotterdam’s HSFO to $47/mt from $38/mt.

Gibraltar's VLSFO price has also risen over the weekend, while the grade's price in Rotterdam has decreased some. The price moves have widened Gibraltar's VLSFO price premium over Rotterdam to $40/mt, from $30/mt on Friday.

Fuel availability is tight for immediate deliveries in the Gibraltar Strait ports, with lead times of around 8-10 days advised for HSFO supplies and 5-7 days for VLSFO and LSMGO, a trader said. Meanwhile, demand is steady there, with around 40 vessels expected to bunker in Gibraltar between 1-7 September, according to shipping agent A. Mateos & Sons.

No vessels are currently awaiting bunkers at the port, and all suppliers are delivering on time except one, which may be 4-6 hours behind schedule, according to port agent MH Bland.

At Algeciras, some suppliers are running up to 18 hours behind schedule, while one supplier is running 4-6 hours behind at Ceuta, port agent MH Bland said.

Weather conditions are forecast to remain favorable for bunkering in Gibraltar this week, but wind gusts of around 25 knots and waves nearing 1.5 meters on Saturday could cause disruptions.

Brent

The front-month ICE Brent contract has moved $0.17/bbl lower on the day from Friday, to trade at $68.03/bbl at 09.00 GMT.

Upward pressure:

Ukraine has continued to target Russian energy infrastructure over the weekend. This news has provided some support to Brent’s price.

The Ukrainian army said on Saturday that it had hit Russian oil refineries in Krasnodar and Syzran, according to a Reuters report.

Kyiv's military reported multiple explosions and a fire at the Krasnodar oil refinery, which produces 3 million mt/year of light petroleum products, the report adds.

“Ukrainian drone attacks on Russian energy infrastructure through August led to a spike in domestic fuel prices,” remarked two analysts from ING Bank. “If these attacks intensify, it could support product cracks,” the analysts said.

Downward pressure:

Brent crude has erased last week’s gains as market focus shifted from geopolitical concerns to the prospect of a supply glut later this year, as OPEC+ fully unwinds the existing 2.2 million b/d cut.

The surge in OPEC+ supply is “expected to push the market into surplus later this year,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

The oil producers’ alliance is due to meet on 7 September to discuss production levels, “although no talks have yet been held about its next move,” Hynes added.

By Nachiket Tekawade and Aparupa Mazumder

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