Benchmark fuel prices in key European and African ports have moved in mixed directions, and Gibraltar is facing congestion amid rough weather.

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

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

• VLSFO prices up in Durban ($10/mt) and Gibraltar ($4/mt), and down in Rotterdam ($1/mt)
• LSMGO prices up in Gibraltar ($6/mt) and Rotterdam ($1/mt)
• HSFO prices up in Durban ($4/mt), and down in Gibraltar ($8/mt) and Rotterdam ($5/mt)
• Rotterdam B30-VLSFO premium over VLSFO down by $1/mt to $257/mt

Gibraltar's VLSFO price has inched up over the weekend, while its HSFO price has recorded losses. This has widened the port’s Hi5 spread by $12/mt since Friday.

Meanwhile, the VLSFO price at Ceuta has jumped by $20/mt since Friday. A higher-priced 150-500 mt VLSFO stem fixed at $480/mt has supported the benchmark. Conversely, the port's HSFO price has tanked by $20/mt, widening the port's Hi5 spread by $40/mt over the weekend.

Supplies are tight for prompt deliveries at Gibraltar, Ceuta and Algeciras, with most suppliers requiring around a week of notice for deliveries of all fuel grades, a trader told ENGINE.

Rough weather conditions persist at Gibraltar, with strong westerly winds of above 25 knots forecast during the day.

Inbound traffic is suspended until afternoon, port agent MH Bland said, citing an alert from the Gibraltar Port Authority. Service launch boats are allowed to and from the bay, while vessels at outer port limits, anchorages and the eastern side of the rock can continue with operations.

The port is facing congestion with 19 vessels currently waiting for bunkers at the port, with some suppliers delayed by more than a day, according to MH Bland.

In Algeciras, some suppliers are running around 18 hours behind schedule, MH Bland added.

Brent

The front-month ICE Brent contract has gained by $0.18/bbl on the day from Friday, to trade at $63.89/bbl at 09.00 GMT.

Upward pressure:

Supply-side risks have added upward pressure on Brent crude over the weekend.

A major drone attack damaged an oil depot and a vessel in the Black Sea port of Novorossiysk in Russia last week. The strike supported Brent's upward movement.

“About 700kb/d [700,000 b/d] of Russian oil were shipped from there [Novorossiysk port] over the past two months,” according to ANZ Bank’s senior commodity strategist Daniel Hynes.

Meanwhile, loadings at the Novorossiysk port resumed on Sunday, Reuters reported.

Iran seized an oil tanker en route to Singapore in the strategically important Strait of Hormuz on Friday – marking the first major escalation of tensions since the Iran-Israel conflict earlier in June.

The Marshall Islands-flagged oil tanker Talara was seized by Iran in the Gulf of Oman after crossing the Strait of Hormuz from Ajman in the UAE, the Associated Press (AP) reported.

The oil market is “facing growing supply risks amid a variety of geopolitical risks,” two analysts from ING Bank remarked.

Downward pressure:

The total number of rigs drilling for crude oil in the US rose by three last week to 417 units, according to Baker Hughes.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

Oversupply concerns, as OPEC+ members steadily restore production, have also capped Brent’s price gains.

The Saudi Arabia-led coalition agreed to collectively increase supply by 137,000 b/d in December – marking the eighth consecutive time it has planned to expedite production.

By Nachiket Tekawade and Aparupa Mazumder

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