Bunker prices have mostly fallen in European and African ports, and fuel availability in ARA is stable.

IMAGE: The Europoort area in the Port of Rotterdam. Getty Images
Changes on the day to 09.00 GMT today:

• VLSFO prices down in Gibraltar ($11/mt), Rotterdam ($9/mt) and Durban ($4/mt)
• LSMGO prices up in Rotterdam ($5/mt), and down in Gibraltar ($13/mt)
• HSFO price unchanged in Durban, and down in Gibraltar ($10/mt) and Rotterdam ($3/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $5/mt to $265/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $10/mt to $321/mt

Benchmark prices for conventional fuels in all three major ports have mostly fallen in the past day, tracking Brent's losses.

Rotterdam's LSMGO price was an outlier, which recorded a $5/mt increase in the past session. A 150-500 mt LSMGO stem fixed at the port at $664/mt, almost in line with the benchmark price, may have provided support. With the steep fall in Gibraltar’s LSMGO price, the Dutch port’s discount to Gibraltar has now narrowed to $43/mt, from $61/mt yesterday.

Fuel availability in the ARA bunkering hub is stable with LSMGO’s recommended lead time now reduced to 3-4 days from last week's 5-7 days, while VLSFO and HSFO supplies still require a notice of 5-7 days, a trader said.  

Brent

The front-month ICE Brent contract has lost by $0.29/bbl on the day, to trade at $68.86/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has found some support as geopolitical tensions remain in focus.

The US has imposed sanctions on a network of shipping companies and nine vessels for allegedly smuggling Iranian oil disguised as Iraqi oil.

By tightening sanctions, the Trump-led US administration aims to reinforce its push to cut the OPEC producer’s oil exports to zero.

Besides, risks to oil supply have intensified as Russia and Ukraine continue cross-border shelling. “This [attacks] comes as the US looks to increase sanctions on Russia to force it to the negotiating table,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Over the weekend, Ukraine struck two major oil refineries in Russia while Moscow carried out a massive attack on 14 regions of Ukraine, according to media reports.

“US Treasury Secretary Scott Bessent said that US would examine possible penalties against Moscow this week,” Hynes added.

Downward pressure:

Brent futures came under downward pressure as market analysts turned their focus to the upcoming OPEC+ meeting on Sunday.

The group is “expected to keep output levels unchanged,” according to two analysts from ING Bank.

The global oil market is bracing for a potential surplus as the Vienna-based group has accelerated the rollback of 2.2 million b/d in voluntary output cuts over the past six months, moving faster than originally planned.

“The bigger risk is OPEC+ deciding to reinstate supply cuts, given concerns about a surplus,” the two analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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