Bunker prices are sharply down with Brent, and a string of Mediterranean ports could see more weather disruptions over the next two days.
Changes on the day to 08.00 GMT today:
- VLSFO prices down in Rotterdam ($15/mt), Gibraltar ($12/mt) and Durban ($10/mt)
- LSMGO prices down in Durban ($15/mt), Rotterdam and Gibraltar ($13/mt)
- HSFO prices down in Rotterdam ($11/mt) and Gibraltar ($9/mt)
Congestion has eased in Gibraltar after a supplier has caught up with most of its backlog in the past day. Three ships are still waiting to take bunkers with the supplier, port agent MH Bland says.
Strong winds are forecast in Gibraltar Strait ports today, and off Malta today and tomorrow, potentially delaying deliveries at anchorage. Rough weather suspended anchorage bunkering across Malta’s offshore areas for much of last week.
Malta currently prices VLSFO at a $6/mt discount to Gibraltar. LSMGO is at parity between the locations, while HSFO380 is $14/mt more expensive off Malta, where fewer suppliers offer the grade and prompt supplies have been in tight availability.
Brent
Front-month ICE Brent crude has dropped $1.57/bbl lower on the day to 08.00 GMT today, when it traded at $83.34/bbl.
Brent is down after American Petroleum Institute (API) figures showed a big crude stock build in the US of 3.60 million bbls – more than twice as much as analysts polled by Reuters expected.
Official data from the US Energy Information Administration (EIA) is due to be released at 14.30 GMT today.
US President Joe Biden has reiterated calls for OPEC+ to phase back oil cuts quicker than its 400,000 b/d per month increase its plan allows. Several OPEC+ member states led by Saudi Arabia, Kuwait, Iraq and Angola have come out in support of its output plan, arguing this will help balance the market.
An expert OPEC+ committee forecast found no significant changes to supply-demand fundamentals for the months ahead, and the group is expected to stick to its current plan when it meets for talks tomorrow.