Fuel prices in major European and African ports have mostly increased, and prompt fuel availability is tight in Gothenburg.

IMAGE: Aerial view of Port of Gothenburg. Gothenburg Port Authority

Changes on the day, from Friday, to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($13/mt) and Gibraltar ($6/mt), and down in Durban ($8/mt)
• LSMGO prices up in Rotterdam ($12/mt) and Gibraltar ($5/mt)
• HSFO prices up in Rotterdam ($11/mt), Durban ($5/mt) and Gibraltar ($3/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $1/mt to $214/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $9/mt to $355/mt

Conventional fuel prices have mostly gained in the three major ports over the weekend, tracking Brent’s rise.

Rotterdam’s HSFO, VLSFO and LSMGO prices have risen more than Gibraltar's, narrowing their price discounts by around $7-$8/mt.

Meanwhile, Durban’s VLSFO price has fallen, narrowing its price premium over Rotterdam by $21/mt, and over Gibraltar by $14/mt. Additionally, the price increase in the port's HSFO price has narrowed its Hi5 spread by $13/mt over the weekend.

Up north, LSMGO’s price at the Swedish port of Gothenburg has also recorded a decline, having fallen by $11/mt, narrowing its price advantage over Rotterdam by around $23/mt. A lower-priced LSMGO stem of less than 50 mt fixed at $635/mt at the Swedish port may have put some downward pressure on the price.

Availability of all fuels remains tight in Gothenburg, with buyers advised to enquire about stems at least 10 days ahead of delivery for offers from a wider selection of suppliers, a trader said.

Wind gusts from the southwest of more than 25 knots and waves of above 2 meters are forecast between 24-25 October and again between 30-31 October at the Swedish port, which may cause suspensions of deliveries and further delay supplies.

Brent

The front-month ICE Brent contract has gained by $0.73/bbl on the day from Friday, to trade at $61.10/bbl at 09.00 GMT.

Upward pressure:

London has intensified pressure on Russian crude oil exports with its latest bout of sanctions. This news has supported Brent crude’s price over the weekend.

The UK has sanctioned Rosneft and Lukoil – two of Russia's largest oil producers.

The companies are “Russia’s biggest oil producers,” remarked Daniel Hynes, ANZ Bank’s senior commodity strategist, adding that the UK has also targeted “two Chinese energy firms and Indian refiner Nayara Energy.”

Downward pressure:

Brent crude has felt some downward pressure today amid growing fears of a potential supply glut, as OPEC+ continues to boost output while unwinding its production cuts.

The International Energy Agency (IEA) has projected that next year’s surplus “could be as high as 4mb/d [4 million b/d],” Hyne said. “That is up roughly 18% from last month’s [September] estimate,” he added.

Meanwhile, escalating US-China trade tensions have further stoked concerns about weaker energy demand.

“The outlook for demand is complicated by the on-again off-again trade tensions between the US and China,” Hynes further added.

By Nachiket Tekawade & Aparupa Mazumder

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