Conventional fuel prices in key European and African ports have declined, and supplies are stable off Malta.

IMAGE: Tankers during a bunker operation off Malta. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Durban ($23mt), Gibraltar ($18/mt) and Rotterdam ($17/mt)
• LSMGO prices down in Rotterdam ($26/mt) and Gibraltar ($22/mt)
• HSFO prices down in Durban ($21/mt), Gibraltar ($18/mt) and Rotterdam ($16/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $18/mt to $257/mt
• Gibraltar B30-VLSFO premium over VLSFO down by $11/mt to $329/mt

Tracking Brent's steep slide, bunker prices have plunged at Rotterdam, Durban and Gibraltar over the past session.

Off Malta, the LSMGO price has fallen more steeply compared to Gibraltar's. Two lower-priced stems of 50-150 mt and 150-500 mt each, fixed at $755/mt and $759/mt, respectively, have probably put additional downward pressure on the benchmark.

Consequently, Malta’s offshore LSMGO price is now at a $12/mt discount to Gibraltar, compared to yesterday, when it was at a modest $2/mt premium.

Fuel availability is stable off Malta, and most suppliers require lead times between 2-4 days for LSMGO, ULSFO, HSFO and VLSFO deliveries, a trader told ENGINE.

Westerly and north-westerly wind gusts of between 25-30 knots and waves over 2 metres are forecast off Malta on 22 November, which could disrupt bunkering in the location, especially in Area 3 and Area 6, which are directly exposed to winds from that direction.

Brent

The front-month ICE Brent contract has plunged by $2.21/bbl on the day, to trade at $62.52/bbl at 09.00 GMT.

Upward pressure:

US President Donald Trump signed a legislation yesterday to officially end the longest federal government shutdown in the history of the country.

The legislation reinstates funding for essential federal operations that were affected by the 43-day government shutdown.

The bill got clearance from the US House of Representative and the US Senate earlier, bringing some relief, as the shutdown had dampened demand in the world’s largest oil-consuming nation by slowing federal operations, according to analysts.

With activities resuming, fuel consumption is expected to pick up.

Downward pressure:

Brent crude’s price has declined sharply as the Organisation of the Petroleum Exporting Countries (OPEC) estimated that global crude supplies will continue to exceed oil demand.

Total crude oil production by OPEC+ members averaged 43.02 million b/d last month, about 73,000 b/d lower than in September.

Oil production by OPEC+’s de-facto leader, Saudi Arabia, increased by 43,000 b/d in October to a little over 10 million b/d. Russia – the coalition’s second-largest producer – increased production by 47,000 b/d to 9.4 million b/d during the same time.

Meanwhile, the latest inventory report from the American Petroleum Institute (API) also weighed on Brent’s price. US crude oil inventories gained by 1.3 million bbls in the week ending 7 November, API reported.

“The decline was largely driven by OPEC’s revised surplus expectations for the global oil market, along with a bearish inventory report from the API,” two analysts from ING Bank noted.

By Nachiket Tekawade and Aparupa Mazumder

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