Bunker prices in major European and African ports have dropped, while prompt fuel availability is tight in ARA ports.

Changes on the day to 09.00 GMT today:

• VLSFO prices down in Durban ($34/mt), Rotterdam ($10/mt) and Gibraltar ($9/mt)
• LSMGO prices down in Rotterdam ($43/mt), Gibraltar ($28/mt) and Durban ($23/mt)
• HSFO prices down in Durban ($22/mt), Gibraltar ($15/mt) and Rotterdam ($3/mt)

Rotterdam’s LSMGO price has fallen more sharply compared to Gibraltar's. A lower-priced, 50-150 mt stem, fixed at $1,405/mt, may have put downward pressure on the benchmark.

Over the past one month, Rotterdam's LSMGO price has moved up $13/mt. The Dutch port’s VLSFO and HSFO prices have gained more sharply, by $81/mt and $96/mt respectively, in the same period.

Meanwhile, Rotterdam’s B100 price has slumped around $182/mt in the past one month, to $1,182/mt, according to ENGINE’s price data. This offers a significant discount to the port’s LSMGO price, which is at $1,447/mt. That discount has widened by $194/mt in a single month.

The significant price discount has increased B100 demand in the Dutch port, a trader told ENGINE.

Fuel availability is tight for prompt supplies in ARA ports, and buyers are recommended lead times of 5-7 days to get good coverage from suppliers, the trader added.

Brent

The front-month ICE Brent contract has lost by $0.20/bbl on the day, to trade at $115.48/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has found support after Yemen’s Houthi militants claimed an attack on one of the biggest oil refineries in Saudi Arabia and US crude stocks declined.

The Iran-aligned Houthis claimed to hit the 550,000 b/d Ras Tanura refinery complex with a ballistic missile. Saudi Arabian authorities have not confirmed the strike.

Besides, US crude oil inventories fell by 2.03 million bbls in the week ending 23 October, according to estimates from the American Petroleum Institute (API).

A decline in US crude stocks usually signals stronger demand and can offer some support to Brent’s price.

Brent futures’ gains in recent weeks suggest the market is pricing in “a greater likelihood of re-escalation,” two analysts from ING Bank said.

Downward pressure:

Brent’s price has come under some downward pressure amid fresh diplomatic efforts to end the Middle East conflict.

Qatari mediators presented Iran with a new draft deal to end the war, and Tehran is expected to respond by the end of this week, Reuters reported, citing an official briefed on the negotiations.

The draft deal sets a seven-day timeline of daily confidence-building steps for both sides, the report added.

If the market gets past the US midterm elections on 3 November without renewed strikes on Iran, its risk premium could start to erode, ING Bank’s analysts said.

By Nachiket Tekawade and Aparupa Mazumder

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