Bunker prices have made fresh gains in Europe and Africa, and rough weather is set to disrupt bunkering in Las Palmas and Algoa Bay until next week.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Durban ($11/mt), Gibraltar ($6/mt) and Rotterdam ($5/mt)
- LSMGO prices up in Durban ($9/mt), Gibraltar ($7/mt) and Rotterdam ($5/mt)
- HSFO prices up in Rotterdam ($4/mt) and Gibraltar ($3/mt)
VLSFO prices in the Gibraltar Strait remain at lower-than-usual $3-6/mt premiums over Rotterdam. They are also at considerable discounts of $14-18/mt to Malta and the Canary Islands ports.
One supplier is running 6-8 hours behind schedule in Gibraltar, but there are no vessels waiting to bunker this morning, port agent MH Bland says.
With moderate swell in Las Palmas today, and higher swell forecast over the weekend, outer anchorage bunkering could get suspended and put pressure on the port’s more limited supply capacity at inner anchorage and at berth. Bunkering is still ongoing without disruptions this morning, according to MH Bland.
HSFO380 is tight in Istanbul, boosting its price to higher premiums over regional ports with better availability, including $50-55/mt premiums over Piraeus and Novorossiysk, and $35/mt over Gibraltar.
High swell of 3-5 metres is forecast in Port Elizabeth and at the Algoa Bay anchorage until Monday. Swell over 2.5 metres, and definitely over 3 metres, will suspend bunkering at anchorage, port agent Sturrock Grindrod says.
HSFO180 is tight for prompt dates in Port Elizabeth, and its price for the grade is just $12/mt lower than for VLSFO.
Brent
Front-month ICE Brent has extended on its gains by adding $0.54/bbl on the day, to $75.25/bbl at 08.00 GMT.
The futures contract has received support from declining US crude inventories, which were down by 4.09 milllion bbls to their lowest level since January 2020 last week, according to Energy Information Administration (EIA) data. A stock draw for gasoline also strengthened the argument for robust US fuel demand, even in the face of the rapid spread of the Delta coronavirus variant.
The US Federal Reserve wrapped up a two-day meeting yesterday with the Fed’s chair Jay Powell saying “progress” has been made towards its inflation and employment targets. The Fed is expected to start tapering its $120 billion per month asset purchasing programme when sufficient strides have been seen in the country’s economic recovery and stability. Powell said it is not quite there yet, and will keep a close eye on inflation and employment start tapering at the right time.
The recent US spike in Covid-19 cases has clouded the economic outlook, but the Fed views this with less concern than previous waves as people are not expected to change their behaviour to the same extent.
“The Fed policy statement was somewhat hawkish now that the economy has made progress towards the Fed’s goals and as policymakers seem somewhat unfazed by delta variant risks,” OANDA analyst Ed Moya commented.