Bunker prices have been broadly steady in European and African ports as Brent rally has slowed, and deteriorating weather conditions have triggered bunker suspensions off Malta.

 

Changes on the day to 09.00 GMT today:

· VLSFO prices up in Gibraltar ($3/mt), down in Rotterdam and Durban ($2/mt)

· LSMGO prices up in Gibraltar ($2/mt), down in Rotterdam and Durban ($2/mt)

· HSFO prices down in Rotterdam and Gibraltar ($1/mt)

 

Gibraltar’s VLSFO price increased against Rotterdam’s, widening its premium by $5/mt to $19/mt.

 

Bunker demand in the ARA region remains steady while availability is getting tighter, sources say.

 

Suppliers in Gibraltar have been less inclined to take on more prompt deliveries while concentrating on reducing the weather-caused congestion delays, which have led to some tightness in availability across all grades, sources say. Recommended lead times are around 5-7 days.

 

Gibraltar’s bunker queue has dropped significantly from Monday’s 23 vessels to just two vessels this morning. Two suppliers are still running 2-6 hours behind schedule, says port agent MH Bland.

 

Bunkering has been suspended across Malta’s six offshore areas. Bunkering Area 4 was operational yesterday, but has now also been closed amid worsening weather conditions, says MH Bland. Conditions are forecast to improve from tomorrow and could allow bunkering to resume.

 

Brent

Front-month ICE Brent has inched up $0.15/bbl on the day, to $89.29/bbl at 09.00 GMT.

 

Brent prices continue to hover near seven-year highs ahead of the OPEC+ meeting scheduled later today, in which the group is expected to increase its output target for March by another 400,000 b/d.

 

The OPEC+ Joint Technical Committee (JTC) held its prediction for global oil demand growth for 2022 unchanged at 4.2 million b/d, Reuters reports.

 

However, investors remain cautious as Saudi Arabia may announce a surprise output hike during the meeting to compensate for the production shortfall by fellow oil producers, says Saxo Bank strategist Ole Hanson.

 

A rise in US drillers’ investments into new oil wells may have stoked Saudi fears over market share, says OANDA analyst Ed Moya.

 

US crude inventories fell by 1.6 million bbls in the week to 25 January, American Petroleum Institute (API) data showed. The fall countering analysts’ expectations of a 1.5 million bbls rise, according to a Reuters poll.

 

Official Energy Information Administration (EIA) data on weekly US crude and oil products is due for release today at 10.30 ET (15.30 GMT).