Most European and African bunker prices have made significant gains with Brent, and congestion has built in Gibraltar.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Durban ($28/mt) and Gibraltar ($15/mt), and down in Rotterdam ($2/mt)
- LSMGO prices up in Gibraltar ($18/mt), Rotterdam ($9/mt) and Durban ($7/mt)
- HSFO prices up in Gibraltar ($12/mt) and Rotterdam ($1/mt)
VLSFO has been priced in a wide range in Rotterdam in the past day, with the lower end of that range pulling down the benchmark.
Hamburg has been pricing VLSFO at competitive levels to Rotterdam. A 150-500 mt stem was fixed in Hamburg around $5/mt below Rotterdam’s benchmark price.
Availability of VLSFO, LSMGO and HSFO380 remains good across ARA, Hamburg and Scandinavian bunker locations. Some VLSFO and HSFO380 tightness was seen in Rotterdam last month, but most suppliers can now accommodate prompt stems of the grades.
Certain suppliers have tight availability of HSFO380 for prompt dates in the Canary Islands. Las Palmas prices HSFO380 at a $12/mt premium over Gibraltar.
Congestion has mounted in Gibraltar, where seven vessels are in line to bunker with a supplier, port agent MH Bland says. Gibraltar has not had any major weather disruptions, but regional bunker locations like off Malta have experienced disruptions and vessels may have been diverted to bunker in Gibraltar instead.
Brent
Front-month ICE Brent has more than recouped its losses from the previous session by gaining $1.71/bbl on the day, to $84.91/bbl to 08.00 GMT.
Brent has climbed as OPEC member states failed to meet output increase targets last month.
The group was allowed to pump 254,000 b/d more oil last month as part of its agreement with allies in the bigger OPEC+ group. But they only managed to fulfil 190,000 b/d of that target, according to a Reuters survey.
While Saudi Arabia and Iraq boosted output to meet their quotas, several African member states including Nigeria and Libya fell short of their targets amid supply disruptions and lacking capacity to produce more.
“The world leaders are likely to be disappointed with the worsening oil market deficit that doesn’t seem like it will get any help from OPEC+,” OANDA analyst Ed Moya said.
OPEC+, which also includes Russia and nine other oil producers, have been increasing output by 400,000 b/d per month, and is expected to stick to that plan when it meets for monthly talks on Thursday.