Most benchmark fuel prices have moved in mixed directions in European and African ports, and fuel availability in the ARA hub remains stable. IMAGE: The Europoort area in the Port of Rotterdam. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam, and down in Durban ($5/mt) and Gibraltar ($4/mt)
• LSMGO prices unchanged in Gibraltar, and down in Rotterdam ($3/mt)
• HSFO prices up in Gibraltar ($7/mt), unchanged in Durban, and down in Rotterdam ($1/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $34/mt to $245/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $7/mt to $370/mt
  

Rotterdam’s ULSFO price has surged by $44/mt over the weekend. A higher-priced 500-1500 mt ULSFO stem fixed at $652/mt may have supported the gain. This has significantly narrowed ULSFO’s discount to Rotterdam’s LSMGO price to $57/mt, from $104/mt on Friday.

Rotterdam’s B30-VLSFO price has slumped by $28/mt, while Gibraltar’s blend has edged $3/mt higher. This has widened Gibraltar’s price premium by $31/mt to $148/mt.

Fuel availability is stable in the ARA bunkering hub this week, a trader said. For LSMGO deliveries, buyers are advised to book 4-5 days ahead to get good coverage from suppliers. Lead times of 5-7 days are advised for VLSFO and HSFO supplies.

Brent

The front-month ICE Brent contract has declined by $0.34/bbl on the day from Friday, to trade at $66.79/bbl at 09.00 GMT.

Upward pressure:

The ongoing Ukrainian drone attacks on Russian oil facilities have added some risks to supply, and put upward pressure to Brent today.

Several major oil facilities in Russia, including one of the country’s largest oil exporting terminals in Primorsk, came under attack last week. These airstrikes have caused some refinery and pipeline closures, according to market analysts.

“Concerns remain that recent attacks on Russia’s energy infrastructure will impact supplies,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Besides, Brent’s price has moved higher after the European Commission (EC) proposed its 19th package of economic sanctions against Russia.

The EC has sanctioned 118 additional vessels that are allegedly a part of Russia’s shadow fleet, raising the total number of sanctioned shadow fleet vessels carrying Russian oil to more than 560, it said.

Downward pressure:

Weighing on Brent’s price, the total number of rigs drilling for crude oil and natural gas in the US rose by three last week to 542 units, according to Baker Hughes.

Specifically, oil rigs increased by two to 418, while gas rigs held steady at 118. This uptick has eased some supply concerns and added downward pressure on Brent crude.

Oversupply concerns, as OPEC+ members steadily restore production, have capped Brent’s price gains.

The Saudi Arabia-led coalition agreed to collectively increase supply by 137,000 b/d in October – marking the sixth consecutive time that they plan to expedite production.

By Nachiket Tekawade and Aparupa Mazumder

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