Conventional fuel prices in Europe and Africa have mostly declined, while prompt VLSFO and LSMGO supplies are tight in Togo’s Lome.

IMAGE: Ocean view of large vessels from a beach in Lome, Togo, West Africa. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices unchanged in Gibraltar, and down in Durban ($7/mt) and Rotterdam ($2/mt)
• LSMGO prices unchanged in Rotterdam and Gibraltar
• HSFO prices down in Durban ($9/mt), Rotterdam ($4/mt) and Gibraltar ($2/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $3/mt to $273/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $5/mt to $331/mt

Durban's VLSFO price has stumbled over the past session, narrowing the port's price premium over Gibraltar to around $69/mt.

Similarly, Lome's VLSFO price has also recorded a decline of $52/mt in a single session. Two lower-priced stems of 150-500 mt, fixed at between $495-505/mt, may have weighed on the benchmark.

Consequently, Lome’s VLSFO price is now at a $28/mt discount to Durban, compared to yesterday, when the premium was $17/mt.

The West African port's LSMGO price has also dipped, falling by $21/mt over the past day. A lower-priced stem of less than 50 mt fixed at $845/mt may have weighed on the price.

The availability of VLSFO and LSMGO at the Togolese port is strained for immediate deliveries, with buyers advised to book at least a week in advance to avoid paying higher premiums, a trader said. HSFO remains extremely tight, the trader added.

Waves over 1.3 meters and increased wave periods of more than 15 seconds are forecast at Lome between 12-13 November, which may make it difficult for ships to bunker in the area.

Brent

The front-month ICE Brent contract has declined by $0.33/bbl on the day, to trade at $64.23/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has felt some upward pressure, following the recent western sanctions on Russian oil companies Lukoil and Rosneft.

According to ANZ Bank’s senior commodity strategist, Daniel Hynes, Russia’s seaborne crude shipments decreased the most since January 2024, with four-week average volumes at 3.58 million b/d for the period ending 2 November.

Lukoil and Rosneft are Russia’s two biggest oil producers. The US and UK sanctions have helped ease some market concerns about a potential supply glut anticipated in 2026.

“There are clear and obvious risks [to supply] in the form of potential disruptions to Russian oil flows," remarked ING Bank’s head of commodities strategy, Warren Patterson.

Downward pressure:

Brent crude’s price has moved lower after the US Energy Information Administration (EIA) reported a big build in crude stocks.

Commercial US crude oil inventories have gained by 5.2 million bbls to 421 million bbls for the week ending 31 October, according to data from the EIA.

Yesterday, the American Petroleum Institute (API) reported a larger build of 6.5 million bbls for the same week.

“Oil prices settled lower yesterday with a large increase in US crude oil inventories,” Patterson said.

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

By Nachiket Tekawade and Aparupa Mazumder

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