Fuel prices in major European and African ports have shown mixed movements, and securing prompt supplies is challenging at Gibraltar strait ports.

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

Changes on the day to 09.00 GMT today:

• VLSFO prices unchanged in Rotterdam, and down in Gibraltar ($11/mt)
• LSMGO prices up in Rotterdam ($6/mt), and down in Gibraltar ($11/mt)
• HSFO prices up in Gibraltar ($11/mt), Rotterdam ($4/mt) and Durban ($2/mt)

Fuel prices at the three main ports have moved in mixed directions, even as Brent stayed nearly flat.

The price of HSFO has increased the most in Gibraltar, among the three major ports, while the port’s VLSFO price has slumped by equal measure. This has narrowed the port’s Hi5 spread by $22/mt in a single day.

LSMGO prices in Rotterdam and Gibraltar have moved in opposite directions, narrowing Gibraltar’s price premium by $17/mt.

HSFO availability is very tight at the Gibraltar strait ports, with buyers advised to give more than two weeks' notice ahead of the delivery date, while VLSFO and LSMGO supplies require at least a week for wider coverage from more suppliers, a trader told ENGINE.

Suppliers are running around 8-12 hours behind schedule in neighboring Algeciras, according to port MH Bland. In Ceuta, some supplies at anchorage can be delayed by around 4-6 hours, MH Bland added.

Brent

The front-month ICE Brent contract has inched $0.01/bbl lower on the day, to trade at $62.30/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has held steady, following US President Donald Trump's claims that India will soon stop purchasing Russian oil.

US negotiators will now try to get China to stop its Russian crude purchases, as both nations have emerged as leading purchasers of Russian crude oil amid US sanctions of Russian commodities, Reuters reported.

Oil gained “as President Trump said India vowed to halt purchases of Russian barrels soon,” two analysts from ING Bank said.

The latest round of sanctions by the UK, targeting Russia’s major oil companies Lukoil and Rosneft, as well as 44 shadow fleet vessels has also supported Brent’s price today.

Downward pressure:

Brent crude has felt some downward pressure after the American Petroleum Institute (API) reported a huge gain in US crude stocks, Reuters reported.

US crude inventories rose by 7.36 million bbls in the week ending October 10, according to data from the API.

A rise in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

“A bearish report from the American Petroleum Institute (API) restricted any major upside for oil prices,” ING Banks analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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