Low sulphur bunker prices have surged on the back of higher crude values in Europe and Africa, and supply remains tight in the Gibraltar region.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Gibraltar ($15/mt), Rotterdam ($12/mt) and Durban ($9/mt)
- LSMGO prices up in Gibraltar ($22/mt), Rotterdam ($19/mt) and Durban ($12/mt)
- HSFO prices up in Rotterdam ($1/mt), and steady in Gibraltar
Availability remains tight in the Gibraltar Strait following a production halt at Portugal’s Sines refinery last month. Several suppliers in the Gibraltar Strait, Canary Islands and wider Mediterranean region source fuel oils from the refinery, and have had to look elsewhere for replenishment this month.
A supplier’s earliest delivery date in Gibraltar is around nine days out.
Gibraltar’s VLSFO and LSMGO prices have gained $3/mt against Rotterdam in the past day, pushing its premiums up to $24/mt and $53/mt, respectively.
There is minimal bunker congestion in Gibraltar this morning, with one vessel waiting, port agent MH Bland says.
Las Palmas is experiencing calmer weather, allowing suppliers to work through backlogs after high swells and disruptions at outer anchorage at the beginning of the week.
Strong winds have suspended bunkering in all designated bunkering areas off Malta today and significant delays are expected, MH Bland says. Calmer conditions are forecast later today and through the week.
Brent
Front-month ICE Brent crude has jumped $1.72/bbl higher on the day to 08.00 GMT, when it traded at $85.21/bbl.
The futures contract climbed to two-week intraday highs after US crude stocks surprised analyst expectations by falling 2.49 million bbls last week, according to indicative figures from the American Petroleum Institute (API).
Analysts polled by Oilprice.com had expected a 1.90 million-bbl build. The draw ended six consecutive weeks of builds and helped push Brent above the $85/bbl mark.
Official Energy Information Administration (EIA) stock figures are set for release at 14.30 GMT today.
The EIA came out with a new forecast yesterday, now expecting Brent to hover around current levels for the rest of the year, and average $82/bbl in the fourth quarter amid undersupply. For next year it expects higher output from OPEC+, US shale producers and other non-OPEC producer to outpace demand growth and pull Brent down to an average of $72/bbl for the year.