Bunker prices across European ports have been pulled down by declining Brent values, as investors await today’s OPEC+ meeting and US inventory data for more price direction.
Changes on the day to 08.00 GMT today:
- VLSFO prices down in Gibraltar ($10/mt), Rotterdam ($9/mt) and Durban ($7/mt)
- LSMGO prices down in Durban ($24/mt), Rotterdam ($17/mt) and Gibraltar ($12/mt)
- HSFO prices down in Rotterdam ($11/mt), and steady in Gibraltar
Gibraltar’s VLSFO price has dropped to discounts of $5/mt to Las Palmas and $10/mt to Malta. Its premium over Rotterdam has narrowed to $11/mt.
Prompt availability of VLSFO and LSMGO continues to be normal in major northern European, Mediterranean and South African ports.
HSFO can be tight for prompt dates in Skaw, South African ports and certain Mediterranean ports like Istanbul.
There is no bunker congestion in Gibraltar and Algeciras today, according to MH Bland. This could allow some of the suppliers to catch up with their slight delays of 2-6 hours.
Yesterday’s minor bunker delays at anchorage in Ceuta have been cleared. There are no delays in Las Palmas, Tenerife or Malta either.
High swell has disrupted anchorage bunkering in Algoa Bay in the past week, but calmer seas are expected from today. Bunkering is typically suspended during swell of more than 2.5 metres. The swell is forecast to dip below 3 metres today, and below 2.5 metres on Friday.
Brent
Front-month ICE Brent has shed $0.67/bbl on the day, to $72.31/bbl at 08.00 GMT.
Refiners in Louisiana are assessing the damage caused by Hurricane Ida as they look to restart refineries, but power outages and widespread flooding may delay the process. 2.3 million b/d of refinery production was halted as refiners braced for the incoming hurricane.
Brent could come under pressure from lower crude demand if offshore oil rigs and platforms restart quicker than refineries.
Two of the 11 rigs and 10 of the 288 platforms that were evacuated in in the Gulf of Mexico in the lead-up to the hurricane have been manned again, the Bureau of Safety and Environmental Enforcement said yesterday.
OPEC+ members are expected to stick to their plan of increasing output by 400,000 b/d in monthly increments when they meet for monthly talks later today. The group forecasts the global oil market to have a deficit of just under 1 million b/d this year, before more OPEC+ oil will help to flip the balance to a surplus of 2.5 million b/d next year.
The US Energy Information Administration (EIA) will publish weekly crude and product inventory data at 14.30 GMT today, which will give an indication of US fuel demand and potentially further price direction.