Bunker prices have moved in mixed patterns at major European and African ports, and VLSFO and HSFO availability is stable in Durban.

IMAGE: Aerial view of Durban port landscape. Getty Images

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($8/mt), and down in Durban ($3/mt) and Gibraltar ($1/mt)
• LSMGO prices up in Gibraltar ($16/mt) and Rotterdam ($1/mt)
• HSFO prices up in Rotterdam ($7/mt), unchanged in Gibraltar, and down in Durban ($13/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $5/mt to $270/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $20/mt to $326/mt
  

Gibraltar’s LSMGO price has recorded the highest gains among the three ports over the weekend, widening its premium over Rotterdam by $15/mt to $60/mt. Two higher-priced 50-150 mt LSMGO stems, fixed at $718/mt and $714/mt at the port, may have supported the gain.

Congestion has surged at Gibraltar with around 12 vessels currently waiting for bunkers, and some suppliers may be delayed anywhere between 4-12 hours, port agent MH Bland said.

Durban’s HSFO has fallen more steeply than its VLSFO price, widening the Hi5 spread at the South African port by $10/mt to $76/mt.

VLSFO and HSFO availability is stable in Durban, with 2-4 days of lead time required for deliveries of both fuel types, while LSMGO supply at the port remains scarce, a trader said.

At least 123 VLSFO stems, 15 HSFO stems and 7 LSMGO stems have been fixed in Durban in the last 90 days, according to ENGINE’s fuel quality data.

Waves up to 2 meters and wind gusts of more than 25 knots are forecast at South Africa’s Durban on 9 September and 11 September, which could disrupt bunkering operations there.

Brent

The front-month ICE Brent contract has declined by $0.26/bbl on the day from Friday, to trade at $66.66/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has gained some support amid prospects of tighter sanctions on Russian crude oil.

US President Donald Trump said yesterday that Washington is prepared to move to a “second phase” of sanctions on Russia, Reuters reported.

The European Union is reportedly exploring new sanctions on Russian banks and energy companies, according to Bloomberg.

The development comes after Moscow launched one of its largest airstrikes on Sunday, setting a major government building ablaze in central Kyiv.

Meanwhile, debris from Ukrainian drones started a fire at a major oil refinery in Russia’s Ryazan region on Friday. The oil refinery is owned by Rosneft, one of Russia’s largest oil producers.

“Oil climbed higher this morning after reports that the European Union is exploring new sanctions on Russian banks and energy companies as part of its latest measures to end the war in Ukraine,” two analysts from ING Bank said.

Downward pressure:

Eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to collectively increase their production by 137,000 b/d in October.

Commenting on OPEC’s latest move, SPI Asset Management managing partner Stephen Innes remarked, “the message is unmistakable: the era of price defense is over, and the new playbook is market share and revenue maximization.”

The Saudi Arabia-led group implemented two voluntary output cuts in 2023 – 1.65 million b/d in April and 2.2 million b/d in November.

The group is on track to complete the rollback of the 2.2 million b/d cuts this month, with Sunday’s decision initiating the phase-out of the April reduction, OPEC said.

“For Saudi Arabia, this is less about squeezing every dollar from Brent and more about pumping lost barrels back into circulation,” Innes added.

By Nachiket Tekawade and Aparupa Mazumder

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