European bunker prices are mostly down with Brent, while South African prices have gained in the past day.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Durban ($7/mt), and down in Gibraltar ($7/mt) and Rotterdam ($2/mt)
- LSMGO prices up in Durban ($3/mt), and down in Gibraltar ($10/mt) and Rotterdam ($7/mt)
- HSFO prices down in Gibraltar ($9/mt) and Rotterdam ($6/mt)
Congestion has eased in Gibraltar, where only one vessel is waiting to bunker this morning, down from five yesterday. Two suppliers are running 2-6 hours behind schedule across Gibraltar and Algeciras, while there are no backlogs in Ceuta, port agent MH Bland says.
Gibraltar’s VLSFO price has come down amid ample supplies, to narrow its premium over Rotterdam to $7/mt. Its HSFO380 and LSMGO prices remain at much wider premiums of $35-37/mt over Rotterdam, however.
Several suppliers continue to be delayed in Las Palmas as high swell complicates outer anchorage deliveries to put pressure on the port’s more limited supply capacity at inner anchorage and berth.
Port Elizabeth and Algoa Bay have calmer seas today, with swell dropping below 2.5 metres and forecast to remain below that threshold until early next week. This should allow for bunkering at anchorage.
Port Elizabeth’s VLSFO price has risen against other South African ports, and flipped to an $8/mt premium over Durban.
Brent
Front-month Brent crude has dropped by $1.38/bbl on the day to 08.00 GMT today, when it stood at $73.11/bbl.
Demand worries have triggered a selloff in the futures contract, pulling it down 3% below last Friday’s settlement level. Rapidly rising cases of the Delta Covid-19 variant in major economies, including upticks in the US and China, has weighed on the price. The prospect of another wave in China has cautioned investors in particular, as it could derail the global demand recovery.
Millions of Chinese people have been put in lockdown to contain the spread. Japan, Australia and Indonesia have extended mobility restrictions in parts of their countries, capping fuel demand.
“Crude prices plunged overnight but nowhere near the same scale as the panicked ‘delta-dip’ a couple of weeks ago,” OANDA market analyst Jeffrey Halley said.
Slowdowns in US and Chinese manufacturing activity have also fuelled demand concerns. US manufacturing fell to six-month lows in July, while Chinese manufacturing slumped to 15-month lows.