Fuel prices have mostly risen in European and African ports, and prompt supply is tight off Malta.

IMAGE: Tankers during a bunker operation off Malta. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($8/mt), Rotterdam and Durban ($7/mt)
• LSMGO prices up in Gibraltar ($11/mt) and Rotterdam ($8/mt)
• HSFO prices up in Durban ($8/mt), Gibraltar ($6/mt) and Rotterdam ($5/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $9/mt to $290/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $19/mt to $389/mt
  

Prices in major ports have gained in the past session, tracking the rise in Brent.

While the price of LSMGO at Gibraltar has recorded significant gains, the grade's price has only slightly dipped off Malta. This has widened Malta offshore's discount to Gibraltar’s LSMGO to $13/mt, from $1/mt.

A lower-priced 150-500 mt stem fixed at $731/mt at the offshore bunkering area may have put downward pressure on the price.

HSFO availability off Malta is very tight, with only one supplier currently able to deliver, a trader told ENGINE. Availability of other grades is comparatively better but is still tight for prompt deliveries with buyers advised to give higher lead times for competitive offers, the trader added.

Between 2-4 October, wind gusts of over 25 knots and waves over 2.5 meters are forecast in the major offshore bunkering areas, which may lead to suspension of all supply operations.

Brent

The front-month ICE Brent contract has gained by $1.00/bbl on the day, to trade at $68.65/bbl at 09.00 GMT.

Upward pressure:

Two major oil ports on Russia’s Black Sea coast – Caspian Pipeline Consortium (CPC) terminal and the Sheskharis facility – have temporarily halted the loading of tankers, following warnings of drone attacks, Bloomberg reported.

The renewed attack warnings highlight the growing impact of Ukraine’s sustained strikes on Russia’s energy infrastructure and have put upward pressure on Brent’s price today.

It is estimated that both facilities export “well over” 2 million b/d of Russian and Kazakh oil to global markets, “holding a major share of the world’s petroleum supply chain,” said two analysts from ING Bank.

Brent gained further after the US Energy Information Administration (EIA) reported a 600,000-bbl draw in US crude stocks.

The data showed "a larger-than-expected drop in US crude oil inventories,” the two ING analysts said. A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

Downward pressure:

Oil market participants are somewhat concerned over supply fundamentals, as additional barrels from Iraq and Kurdistan are expected to enter circulation, adding downward pressure on Brent.

Crude oil flows from Iraqi Kurdistan are expected to resume soon, as eight oil firms struck a deal with Iraq's federal government and Kurdistan Regional Government yesterday, Reuters reported.

The announcement has “paved the way for resumption of Kurdish crude exports from Ceyhan within days,” remarked VANDA Insights’ founder Vandana Hari.

By Nachiket Tekawade and Aparupa Mazumder

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