European and African bunker fuel prices have moved in mixed directions, and slight congestion is seen in Gibraltar.

IMAGE: View from the Rock of Gibraltar, UK to Algeciras, Spain. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($19/mt), and down in Rotterdam ($34/mt) and Gibraltar ($7/mt)
• LSMGO prices up in Durban ($20/mt), and down in Gibraltar ($36/mt) and Rotterdam ($5/mt)
• HSFO prices up in Durban ($14/mt), unchanged in Rotterdam, and down in Gibraltar ($2/mt)
• B30-VLSFO price down in Rotterdam ($19/mt)

Bunker fuel prices in Rotterdam and Gibraltar have mostly fallen over the past session, while prices in Durban have risen.

Gibraltar’s LSMGO price has fallen more sharply than Rotterdam’s, narrowing its premium over the Dutch port by $31/mt in a single day to $99/mt.

Meanwhile, Rotterdam’s VLSFO price has dropped more sharply than Gibraltar’s, widening Gibraltar’s premium over Rotterdam by $27/mt in a single day.

HSFO prices in both ports have remained relatively unchanged, with Gibraltar maintaining a $60/mt premium over Rotterdam. Scrubber-fitted ships could benefit more from bunkering HSFO in Gibraltar, where the Hi5 spread stands at $43/mt, compared with $23/mt in Rotterdam.

Fuel availability remains tight in the Gibraltar Strait ports, with buyers advised lead times of 7-10 days to secure good coverage from suppliers, a trader told ENGINE.

Gibraltar is experiencing slight congestion, with around 14 vessels awaiting bunkers, mostly because of barge unavailability or a lack of space for bunkering operations, port agent MH Bland said.

One supplier is reporting bunkering delays of 12-24 hours in Gibraltar, while another is running 8-12 hours late. Other suppliers are experiencing delays of 4-6 hours, the port agent added.

In Algeciras, one supplier is delayed by more than a day for HSFO deliveries, with shorter delays for other products. Other supplies are delayed by 6-12 hours, according to the port agent.

Barge deliveries in the port of Ceuta are delayed by 8-10 hours, the port agent added.

Brent

The front-month ICE Brent contract has declined by $3.04/bbl on the day, to trade at $100.63/bbl at 09.00 GMT.

Upward pressure:

Brent crude's price has felt some upward pressure after US President Donald Trump rejected claims of easing economic sanctions on Tehran by releasing frozen Iranian funds.

The US President also threatened that he "may blow up Iran," if a deal is not reached soon.

The global oil market has become increasingly familiar with Trump's maximalist rhetoric, where aggressive warnings routinely trigger sharp knee-jerk spikes in Brent's price even as participants weigh the actual likelihood of an all-out war.

Downward pressure:

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

Commercial US crude oil inventories increased by around 922,000 bbls to 427.3 million bbls in the week ending 25 September, according to data from the EIA.

Market analysts expected an inventory draw of 455,000 b/d instead, two analysts from ING Bank noted.

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

Yesterday, the American Petroleum Institute (API) reported a 1.02 million-bbl rise in US crude stocks during the same week.

"Bearish sentiment was reinforced by the latest EIA data, which showed US commercial crude inventories rising by 922k barrels [922,000 bbls] last week," ING Bank's analysts added.

By Nachiket Tekawade and Aparupa Mazumder

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