Bunker prices have reached fresh multi-month highs on the back of Brent’s rally, and rough weather could disrupt anchorage bunkering in the Gibraltar Strait tomorrow.
Changes on the day from Friday, to 08.00 GMT today:
- VLSFO prices up in Rotterdam ($4/mt), Gibraltar and Durban ($1/mt)
- LSMGO prices up in Rotterdam ($11/mt) and Durban ($2/mt), and down in Gibraltar ($9/mt)
- HSFO prices up in Rotterdam ($4/mt), and down in Gibraltar ($27/mt)
Bunkering could be disrupted by strong winds and swell in the Gibraltar Strait tomorrow, MH Bland says. Deliveries at Algeciras D and C anchorages are likely to be halted, the port agent says.
Gibraltar has slight congestion today, with two vessels waiting for barges to become ready.
Gibraltar’s VLSFO price has dropped against Rotterdam since last week, to narrow its daily average premium to $3/mt today. The premium came down from a high of $15/mt at the middle of last week.
Gibraltar’s HSFO380 and LSMGO prices have come off markedly since Friday, following significant gains last week.
Availability of all fuel grades remains tight in the Gibraltar Strait after a supplier ran out of product. Lead times vary between suppliers, from around 2-12 days out.
Gale-strength winds are forecast off Skaw from Wednesday, and could lead suppliers to push deliveries to the nearby, and often more sheltered, Gothenburg anchorage. VLSFO availability has improved off Skaw and Gothenburg, while HSFO380 looks tight until the end of the month, sources say.
Brent
Front-month ICE Brent has risen by $1.39/bbl on the day from Friday to 08.00 GMT today, when it stood at $85.43/bbl.
Brent has rallied to a seven-year high on tightening global supply. Global oil stockpiles are under pressure from recovering demand as economies around the world continue to ease Covid-19 restrictions. The US has announced it will reopen entry for vaccinated visitors from 8 November, paving the way for a boost in air travel and tourism.
Tight coal and natural gas markets have spiked prices and prompted a bigger-than-expected seasonal shift to oil-based feedstocks for power plants in Asia and Europe. The switch could boost oil demand by as much as 500,000 b/d in the fourth quarter, the Energy Information Administration (EIA) predicts.
“With no signs of the China energy crunch alleviating soon, and with the rest of northern Asia and Europe competing for scarce energy supplies, particularly gas, the price environment for oil remains constructive,” says OANDA market analyst Jeffrey Halley.