Fuel prices in major European and African ports have slumped, and fuel availability is normal in Istanbul.

IMAGE: Aerial view of a cargo ship in transit in Istanbul, Türkiye. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Durban ($32/mt), Rotterdam ($24/mt) and Gibraltar ($8/mt)
• LSMGO prices down in Rotterdam ($28/mt) and Gibraltar ($13/mt)
• HSFO prices down in Durban ($13/mt), Rotterdam ($8/mt) and Gibraltar ($6/mt)
• Gibraltar B30-VLSFO premium over VLSFO down by $18/mt to $364/mt

Fuel prices at the three major ports have dropped considerably over the past day, tracking Brent's steep slide.

VLSFO prices in Rotterdam and Durban have fallen more sharply than HSFO prices at these ports, narrowing their Hi5 spreads by $16/mt and $19/mt respectively.

Rotterdam's VLSFO price declined nearly three times more than Gibraltar's, widening the latter's premium by $16/mt.

As for LSMGO, the decline in the grade's price at Gibraltar is considerably less than Rotterdam's. This has widened Gibraltar’s price advantage by $15/mt.  

Meanwhile, the price of LSMGO at Istanbul has fallen by $41/mt in a single day, exactly halving its premium over Gibraltar to $28/mt now. Two lower-priced 150-500 mt LSMGO stems fixed at the port at $705/mt and $710/mt respectively, may have added additional downward pressure on the price.

Availability of LSMGO, ULSFO and VLSFO fuel grades is normal at the Turkish port, with lead times of 1-2 days sufficient to secure deliveries. However, HSFO deliveries are a bit tight for prompt supplies, a trader and a local supplier told ENGINE.

Brent

The front-month ICE Brent contract has dropped by $1.93/bbl on the day, to trade at $60.37/bbl at 09.00 GMT.

Upward pressure:

The UK has announced fresh sanctions on Russia’s energy industry this week. This news has added some upward pressure on Brent crude’s price.

London has imposed sanctions on Russia’s two largest oil companies – Lukoil and Rosneft, as well as 44 shadow fleet vessels.

Both companies “together export 3.1 million barrels of oil per day,” UK’s Foreign, Commonwealth & Development Office said in a statement.

Rosneft alone is responsible for 6% of global and nearly half of all Russian oil production, according to the statement.

“Pressure has been building on Russia’s energy sector in a bid to curb petrodollars to the Kremlin and its ability to finance its war with Ukraine,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

The US Energy Information Administration (EIA) reported a decline in US crude stocks yesterday. This has moved Brent’s price lower, according to analysts.

Commercial US crude oil inventories have gained by 3.5 million bbls to 424 million bbls for the week ending 10 October, according to data from the EIA.

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

“Oil prices were approaching a third consecutive weekly decline… following a bearish US oil inventory report,” two analysts from ING Bank said.

By Nachiket Tekawade & Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online