European and African bunker prices have moved lower after steadily rising in past days, and congestion has eased in the Gibraltar Strait.

 

Changes on the day to 09.00 GMT today:

· VLSFO prices down in Durban ($31/mt), Gibraltar ($9/mt), and Rotterdam ($6/mt)

· LSMGO prices up in Rotterdam ($7/mt), and down in Durban ($22/mt) and Gibraltar ($15/mt)

· HSFO prices steady in Rotterdam, and down in Durban ($8/mt)

 

Gibraltar’s LSMGO price has dropped sharply against Rotterdam’s, narrowing its premium by $22/mt in the past day, to $18/mt.

 

VLSFO availability is tight in Antwerp, with lead times of around 4-6 days recommended. Most suppliers are declining offers for prompt deliveries while only a few can offer limited quantities.

 

LSMGO stems require relatively shorter lead times of around 2-3 days in Antwerp.

 

Gibraltar’s bunker queue has reduced from 15 vessels yesterday to eight vessels this morning. Two suppliers are still running 2-6 hours behind schedule, says port agent MH Bland.

 

Malta port is experiencing adverse weather today, with strong winds and waves touching more than three meters threatening bunker suspension, says MH Bland. Presently, only Bunkering Area 4 off Malta is operational.

 

Brent

Front-month ICE Brent has dropped $1.89/bbl on the day, to $89.14/bbl at 09.00 GMT today.

 

Brent’s rally has run out of steam and the futures contract has slipped down from seven-year highs ahead of tomorrow’s OPEC+ meeting.

 

Some market participants think OPEC+ could phase back production cuts earlier than initially planned. Goldman Sachs says the recent price rally has put pressure on the group from its oil importers and could trigger bigger monthly output increases, according to Reuters.

 

But OPEC+ is still expected to continue to increase its output target by 400,000 b/d for March.

 

“$100 oil might not be too far away as expectations are high that supply will not come close to catching up with demand as OPEC+ will deliver gradual production increase targets that they will fall short of reaching,” says OANDA strategist Ed Moya.

 

The US and Russia clashed at the UN Security Council over troop build-up near Ukraine, accusing the other of being “provocative,” Reuters reports.

 

“The oil market is likely to remain very tight given the geopolitical risks and slower production increases despite high crude prices as oil giants focus on clean energy transition,” Moya adds.

 

Oil demand may be spurred by cold weather in the US and high gas prices in Europe, says ANZ strategist Daniel Hynes.

 

Markets will also digest weekly US oil inventory data to be released by the American Petroleum Institute later today.