Bunker benchmark prices in key European and African ports have increased, and bunkering operations at Gibraltar are facing weather-related disruptions.

IMAGE: Aerial view of the Bay of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($20/mt), Gibraltar ($15/mt) and Rotterdam ($11/mt)
• LSMGO prices up in Rotterdam ($22/mt) and Gibraltar ($20/mt)
• HSFO prices up in Durban ($13/mt), Gibraltar ($10/mt) and Rotterdam ($9/mt)
• Rotterdam B30-VLSFO premium over VLSFO up by $1/mt to $258/mt
• Gibraltar B30-VLSFO premium over VLSFO has remained unchanged at $329/mt

Fuel prices have increased considerably at the three major ports over the last day, tracking a rise in Brent price.

LSMGO prices have seen outsized gains at both Rotterdam and Gibraltar.

Strong south-westerly wind gusts of between 25-30 knots, associated with Storm Claudia, are set to persist at Gibraltar throughout the day, with a risk of those wind gusts exceeding 35 knots. Consequently, all incoming traffic has been suspended by the port authorities. This has disrupted all bunkering operations at the port.

Around 13 vessels are awaiting bunkers at the port, and some suppliers are already running almost a day behind schedule, according to port agent MH Bland.

Queues are expected to increase due to the suspension, which will lead to further delays in bunkering when weather conditions improve and the traffic resumes.

Prompt supplies are tight at the Gibraltar Strait ports, with HSFO, VLSFO and LSMGO supplies requiring around a week of notice, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $1.19/bbl on the day, to trade at $63.71/bbl at 09.00 GMT.

Upward pressure:

Brent crude has edged higher following renewed Ukrainian drone strikes on key Russian energy infrastructure.

Supply fears have resurfaced after a Ukrainian drone attack hit an oil depot in the major Russian export hub of Novorossiysk, Reuters reported.

The strike has damaged a ship, apartment buildings, an oil depot in Novorossiysk and injured three crew members of the vessel, the report added.

“Crude futures leapt up… on the back of reports of Ukrainian drone strikes causing fire and damage at Russia’s major Black Sea port of Novorossiysk overnight,” remarked VANDA Insights’ founder Vandana Hari.

Downward pressure:

Brent crude’s price has felt some downward pressure after the US Energy Information Administration (EIA) reported another surge in US crude stocks.

Commercial US crude oil inventories increased by 6.4 million bbls to 428 million bbls for the week ending 7 November, according to data from the EIA.

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

Two analysts from ING Bank said that the EIA report was “bearish” and the inventory build was “larger than expected”.

By Nachiket Tekawade and Aparupa Mazumder

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