Bunker benchmarks have fallen across European and African ports, and prompt supplies are tight in Las Palmas.

IMAGE: Cargo ships in the Port of Las Palmas, Spain. Getty Images
Changes on the day to 09.00 GMT today:

• VLSFO prices down in Rotterdam ($17/mt), Gibraltar ($4/mt) and Durban ($3/mt)
• LSMGO prices down in Rotterdam ($13/mt) and Gibraltar ($2/mt)
• HSFO prices down in Rotterdam ($7/mt), Durban ($6/mt) and Gibraltar ($1/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $4/mt to $261/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $9/mt to $312/mt

Fuel benchmark prices have fallen over the past session, reflecting Brent's decline.
Rotterdam’s VLSFO price has recorded the steepest decline among the three ports, widening Rotterdam’s discount to Gibraltar by $13/mt to $58/mt.

Rotterdam's LSMGO price decline has widened its discount to Gibraltar's LSMGO price by $11/mt to reach $54/mt.

LSMGO's price at Las Palmas has dropped sharply by $21/mt, bringing the Canary Islands’ bunkering hub to a $5/mt discount to Gibraltar, compared to a $14/mt premium yesterday.

Though fuel availability at Las Palmas is tight for immediate deliveries, this week's lead times for LSMGO, HSFO and VLSFO have reduced to 5-7 days, compared to last week's 10-day notice, a trader said.

Operations have been temporarily cancelled at the outer anchorage areas of Las Palmas due to strong weather, port agent MH Bland said. Some supplies can be carried out at the inner anchorage and the berth, but with a higher waiting time. The port is forecast to experience wind gusts close to 17 knots and waves over 1.5 meters throughout the day.

The congestion at Gibraltar has reached eight vessels awaiting bunkers, compared to four yesterday, while some suppliers are running 2-6 hours behind schedule, port agent MH Bland said.

Brent

The front-month ICE Brent contract has moved $1.84/bbl lower on the day, to trade at $67.02/bbl at 09.00 GMT.

Upward pressure:

Brent crude has found some support from geopolitical risks that could cut oil supply from the market.

Washington has imposed sanctions on several shipping companies and vessels earlier this week for allegedly smuggling Iranian oil disguised as Iraqi oil.

By tightening sanctions, the US administration aims to drive the OPEC producer’s oil exports to zero. “Geopolitics laces through the crude market,” remarked SPI Asset Management managing partner Stephen Innes.

Besides, US President Donald Trump is considering phase two and phase three sanctions on Russia, as Moscow fails to reach a ceasefire deal with Kyiv, Bloomberg reports.

The development comes as the US imposes 50% tariffs on Indian imports in retaliation for New Delhi’s continued purchases of Russian oil.

“Washington’s campaign to stifle Russia’s oil lifeline is intensifying, with Trump teasing “phase two” and “phase three” sanctions after penalizing India for lifting Moscow’s barrels,” Innes said.

Downward pressure:

Brent’s price has plunged following reports that the OPEC+ ministers, due to meet on Sunday, may consider further increases in production targets.

The Saudi Arabia-led group is expected to consider another output hike, Reuters reports, citing two sources familiar with the matter.

“OPEC+ is floating the idea of production hikes at this weekend’s meeting,” according to Innes.

The global oil market faces the risk of oversupply as the Vienna-headquartered group has unwound 2.2 million b/d of voluntary production cuts over the past six months, at a quicker pace than initially scheduled.

“[The] move that feels counterintuitive until you remember the cartel’s long game: clawing back market share from non-aligned producers who’ve been pumping flat-out,” Innes added.

By Nachiket Tekawade and Aparupa Mazumder

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