Bunker fuel prices in major European and African ports have mostly edged up, while Gibraltar is facing congestion.

IMAGE: Oil products tanker moored at the Port of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($4/mt), unchanged in Rotterdam, and down in Gibraltar ($4/mt)
• LSMGO prices up in Gibraltar ($8/mt) and Rotterdam ($3/mt)
• HSFO prices up in Durban ($5/mt), Rotterdam and Gibraltar ($3/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $5/mt to $261/mt
• Gibraltar B30-VLSFO premium over VLSFO up by $5/mt to $337/mt

Fuel prices have mostly inched higher in the three major ports over the last day, while the VLSFO price has declined in Gibraltar and remained unchanged in Rotterdam.

Bunker operations in Gibraltar have now resumed after getting halted by a temporary weather-related disruption a day earlier. However, strong congestion is reported at the port today as suppliers work to clear the backlog of vessels.

Around 10 vessels are currently awaiting bunkers, up from three before the suspension, while most suppliers are now experiencing delays of 4-8 hours, compared with only one supplier running 6-8 hours behind schedule previously, port agent MH Bland said.

Around 14 vessels are expected to arrive for bunkers in Gibraltar today, according to A. Mateos & Sons.

Meanwhile, South Africa’s Transnet Port Authority has issued a weather alert for 31 October, warning of north-easterly wind gusts of more than 25 knots and waves of up to 3 meters, which could affect bunkering operations.

Brent

The front-month ICE Brent contract has increased by $0.48/bbl on the day, to trade at $64.53/bbl at 09.00 GMT.

Upward pressure:

The oil market’s attention remains fixed on today’s highly anticipated meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping.

Both leaders are scheduled to meet in Seoul, South Korea, to discuss ways to ease trade tensions and strengthen bilateral economic ties.

The oil market is “laser-focused” on a high-stakes summit between two leaders, “that is expected to result in a trade war détente,” VANDA Insights’ founder Vandana Hari commented.

Meanwhile, Brent crude’s price has moved higher after the US Energy Information Administration (EIA) reported a big draw in US crude stocks.

Commercial US crude oil inventories have declined by 6.9 million bbls to 416 million bbls for the week ending 24 October, according to data from the EIA.

“Lower imports were behind the inventory draw, with total crude imports falling 867k [867,000] b/d week-on-week to the lowest level since February 2021,” remarked two analysts from ING Bank.

A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

Downward pressure:

Fears of a supply glut have capped some of Brent’s price gains today, as market analysts expect the OPEC+ group of oil producers to continue ramping up production in December.

Earlier this week, a Bloomberg report suggested that the Saudi Arabia-led coalition may announce another monthly increase of 137,000 b/d for December.  

Eight members of the group are scheduled to virtually meet on 2 November to decide on December production policy.

“The market will also be watching this weekend's OPEC+ meeting, where the group will likely announce another 137k b/d [137,000 b/d] supply hike for December,” ING Bank’s analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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