European and African bunker prices have made fresh gains on the back of an uptick in crude values, and congestion has built amid rough weather in Gibraltar Strait ports.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Durban ($7/mt), Rotterdam and Gibraltar ($3/mt)
- LSMGO prices up in Rotterdam ($7/mt), Gibraltar and Durban ($6/mt)
- HSFO prices up in Rotterdam ($6/mt) and Gibraltar ($4/mt)
Strong winds and heavy swell has disrupted some Gibraltar Strait bunkering today, according to port agent MH Bland. Swell restricts bunkering to inner anchorage in Algeciras, congesting the more limited space there with vessels.
Bunkering has been suspended at anchorage in Ceuta. Deliveries in port are still possible. Weather conditions are forecast to improve in the Spanish enclave tomorrow morning.
Bunker congestion persists in Gibraltar this morning. Five vessels are waiting for barges to finish other deliveries in the port. A supplier is delayed by around half a day.
More weather disruptions are expected in Algoa Bay from this afternoon until tomorrow. Suppliers have been working to clear delivery backlogs after bunkering was suspended during rough weather on Monday and yesterday. Lead times of around one week are advised for VLSFO and LSMGO.
Fuel availability is generally good across other South African ports.
Gale-strength wind gusts are forecast to hit Skaw from this afternoon and last until Saturday. Deliveries could get disrupted and possibly moved into the nearby port of Gothenburg.
Brent
Front-month ICE Brent crude has edged $0.14/bbl higher in the day to 08.00 GMT today, when it stood at $75.11/bbl.
Brent has risen back above the $75/bbl mark with support from indicative US crude inventory figures from the American Petroleum Institute (API) showing a 6.11 million-bbl weekly stock draw – the biggest in over two months.
Crude has been pulled out of US storage in every week since late July. Draws have been particularly big in the weeks after US Gulf offshore production was shut in and kept offline after Hurricane Ida struck.
Offshore crude production has returned in increments, and the latest figures from the Bureau of Safety and Environmental Enforcement show 321,000 b/d, or 17%, of production capacity remains offline.
Official US data on crude and products inventories from the Energy Information Administration (EIA) is scheduled for release at 14.30 GMT today. A similar-sized draw there could prop up Brent further.
Nigeria has made a case for its baseline production quota to be raised from 1.83 million b/d to 2.20 million b/d, Argus Media reports. Other OPEC+ members were granted new baselines when the group’s monthly output policy talks stranded in July. Nigeria argues that its current baseline was set during a time of crisis when militants attacked and stole from oil installations in 2018.