Most benchmark fuel prices have moved in mixed directions in European and African ports, while HSFO supply has tightened in Durban.

IMAGE: Aerial view of Durban port landscape. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($10/mt), and down in Rotterdam ($24/mt) and Gibraltar ($16/mt)
• LSMGO prices down in Gibraltar ($13/mt) and Rotterdam ($4/mt)
• HSFO prices up in Rotterdam ($11/mt) and Gibraltar ($2/mt), and down in Rotterdam ($1/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $8/mt to $253/mt

VLSFO prices at Rotterdam and Gibraltar have recorded significant declines in the past session. Conversely, HSFO prices at these ports have recorded gains, narrowing the Hi5 spreads at these ports. The Hi5 spread at Rotterdam has narrowed by $35/mt to $38/mt, and at Gibraltar by $18/mt to just $12/mt.

A lower-priced 500-1500 mt VLSFO stem fixed at $427/mt in Rotterdam, and another lower-priced 500-1500 mt VLSFO stem fixed at $455 in Gibraltar, have both weighed down on the respective prices.

At Durban, on the other hand, the VLSFO price has gained considerably. However, its HSFO price has dipped, widening the Hi5 spread at the South African port by $11/mt to $113/mt.

HSFO availability has tightened in Durban, with buyers advised to enquire about stems a week in advance, while VLSFO remains easily available with a notice of 2-4 days sufficient, a trader told ENGINE. LSMGO supplies remain extremely tight at the port.

At least five vessels are expected to call at Durban for bunkers between 23 September and 2 October, according to shipping agent Trade Ocean.

Wind gusts of more than 25 knots and waves over 2.5 meters are forecast at Durban on 24 September, 28 September, 3 October and 5 October, which may result in disruptions to bunkering operations at the port. 

Brent

The front-month ICE Brent contract has lost by $0.41/bbl on the day, to trade at $66.38/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has found some support due to impending supply concerns in the global oil market.

Canadian Prime Minister Mark Carney has called for the implementation of secondary sanctions on Russia, Bloomberg reported.

The remark came days after the European Commission (EC) proposed its 19th package of economic sanctions against Russia, targeting 118 additional vessels that are allegedly a part of Russia’s shadow fleet.

“This [Carney’s remarks] revived supply concerns, which had eased late last week following an amicable exchange between presidents [Donald] Trump and Xi [Jinping],” said ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

Brent’s price has moved lower following news that Iraq has hiked oil exports this month, Reuters reported, citing Iraqi state oil marketer SOMO.

The increase in exports comes as OPEC+ producers continue gradually unwinding voluntary production cuts, deepening market concerns over a looming supply glut.

Earlier this month, eight members of OPEC+ agreed to increase production by 137,000 b/d in October - the sixth consecutive time that they plan to expedite production.

“Iraq is pumping out more barrels now that OPEC+ loosened its grip on quotas,” remarked Price Futures Group’s senior market analyst Phil Flynn.

By Nachiket Tekawade and Aparupa Mazumder

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