Conventional bunker benchmarks have mostly risen at European and African ports, and vessels at Gibraltar are facing light congestion.
IMAGE: Oil products tanker moored at the Port of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($19/mt), Rotterdam and Durban ($12/mt)
• LSMGO prices up in Rotterdam ($12/mt) and Gibraltar ($10/mt)
• HSFO prices up in Rotterdam ($10/mt) and Durban ($8/mt), and down in Gibraltar ($2/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $2/mt to $260/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $20/mt to $311/mt

HSFO, VLSFO and LSMGO prices have mostly surged in the last day at the three main ports, tracking the sharp rise in Brent.

Gibraltar’s HSFO price has defied the broader trend, having recorded losses in the past session. A lower-priced stem fixed at the port at $440/mt for over 1500mt of HSFO may have affected the benchmark’s price. Conversely, the port's VLSFO price gains have considerably widened the port’s Hi5 spread by $21/mt to $81/mt.

Four vessels have queued up at Gibraltar awaiting bunkers, and one supplier is running 4-6 hours behind schedule, port agent MH Bland said. Only three vessels are expected to bunker at the port during the day, according to shipping agent A. Mateos & Sons.

Meanwhile, around nine vessels are expected today at Ceuta for bunkers.

In the Eastern Mediterranean region, most ports are reporting normal availability with LSMGO supply now stabilized off Malta and in Turkey’s Istanbul, after being tight last week, a trader said. VLSFO supply in Greece’s Piraeus continues to be tight, the trader added.

Brent

The front-month ICE Brent contract has gained by $1.12/bbl on the day, to trade at $69.15/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has gained by more than $1/bbl after Ukraine escalated its attacks on Russian energy infrastructure, hitting several oil refineries over the weekend.

On Sunday, Ukrainian President Volodymyr Zelensky said Kyiv plans to carry out further strikes deep inside Russia following weeks of intensified attacks on its energy infrastructure, according to a Reuters report.

“Crude oil edge[d] higher… as geopolitical risks came back into focus,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

The recent Ukrainian drone attacks have forced the shutdown of oil facilities accounting at least 17% of Russia’s oil-processing capacity, or about 1.1 million b/d, Reuters estimates.

“Ongoing risks to energy infrastructure in Russia remain high,” Hynes said. “Exports of Russian oil from its ports have dropped to a four-week low of 2.72mb/d [2.72 million b/d], according to tanker tracker data,” he added.

Downward pressure:

The oil market’s attention is increasingly turning to the OPEC+ meeting due on 7 September, according to analysts.

The prospect of a supply glut later this year as the Saudi Arabia-led oil producers group fully unwinds the existing supply cuts, has put some downward pressure on Brent today.

“We believe, just like the broader market, that the group will leave production levels unchanged for October,” two analysts from ING Bank said.

OPEC+ has rolled back 2.2 million b/d of additional voluntary supply cuts over the past six months, ahead of its initial plan.

“The scale of the surplus through next year means it’s unlikely the group will bring additional supply onto the market,” the two analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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