Fuel prices have mostly risen in European and African ports, and prompt supply is tight in the Gibraltar strait.

IMAGE: Aerial view of the Bay of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($6/mt) and Rotterdam ($1/mt), and unchanged in Gibraltar
• LSMGO prices up in Rotterdam ($10/mt) and Gibraltar ($6/mt)
• HSFO prices up in Rotterdam and Durban ($7/mt), and unchanged in Gibraltar
• Rotterdam B30-VLSFO premium over VLSFO up by $8/mt to $298/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $10/mt to $399/mt

Prices of most conventional fuels at Rotterdam, Gibraltar and Durban have climbed up in the past session, in line with Brent's gain.

However, Gibraltar's HSFO and VLSFO benchmark prices remain unchanged. Consequently, the mediterranean port's HSFO price premium to Rotterdam has slipped by $7/mt to $49/mt.

Availability is tight for immediate supplies at the Gibraltar strait ports, with buyers advised to give around 8-10 days' notice for HSFO, and 5-7 days for VLSFO and LSMGO, to get competitive offers from a wider selection of suppliers, a trader told ENGINE.

Vessels are queuing up for bunkers at Gibraltar, with five vessels waiting for bunkers today, compared to none just a few days ago, and some suppliers can be delayed by up to 14 hours, port agent MH Bland said.

In nearby Algeciras, some suppliers can be delayed by up to 12 hours, the port agent added. Bunkering operations continue as usual in Ceuta.

Waves of over 1.5 meters accompanies by wind gusts of over 25 knots are forecast in the strait on 1 October, which may lead to suspensions of supply operations.

Brent

The front-month ICE Brent contract has gained by $0.91/bbl on the day, to trade at $69.56/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has gained on the back of supply concerns in the global oil market.

The price surge follows media reports that Russia may cut diesel exports amid escalating Ukrainian drone strikes on its oil refineries.

The cutback in exports will mainly affect companies that buy diesel inside Russia and then ship it abroad, Bloomberg reported.

The Russia-Ukraine conflict, that started in 2022, has escalated further in recent weeks, with the latter carrying out successive drone strikes targeting Russian refineries, pipelines, and export hubs.

The attacks have dealt a significant blow to Russia’s energy sector – a key contributor to its economy.

“Russia is restricting diesel exports, owing to disruptions at several refineries caused by Ukrainian drone strikes, and may have to curtail crude production,” VANDA Insights’ founder Vandana Hari said.

Downward pressure:

Iraq’s Prime Minister Shia al-Sudani has announced a landmark agreement between Baghdad and the Kurdish regional government in Erbil to restart oil exports from its Kurdish region to Turkey on Saturday, Reuters reported.

Crude flows from the region were interrupted for more than two years, the report added. This news has put some downward pressure on Brent’s price today.

The resumption of crude exports from Iraqi Kurdistan “could return up to 500kb/d [500,000 b/d] to the global market,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

By Nachiket Tekawade & Aparupa Mazumder

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