Bunker prices are mostly moving up with Brent across Europe and Africa, and Gibraltar’s prices have received extra support from tight availability.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Gibraltar ($20/mt), Rotterdam ($10/mt) and Durban ($7/mt)
- LSMGO prices up in Gibraltar ($25/mt) and Rotterdam ($9/mt), and down in Durban ($15/mt)
- HSFO prices up in Gibraltar ($7/mt) and Rotterdam ($6/mt)
Bunkering has been suspended on rough weather off Malta. All offshore bunkering operations have been halted until the weather improves, port agent MH Bland says. Calmer weather is forecast from tomorrow morning.
Higher-priced VLSFO and LSMGO stems have helped push up Gibraltar’s benchmark prices in the past day, widening their premiums over regional ports such as Algeciras, Ceuta, Tanger Med and Malta.
All Gibraltar Strait prices have seen support from tightening prompt availability this week. A supplier has run out of HSFO380, VLSFO and LSMGO, and other suppliers are seeing higher demand as a result, supporting premiums. Lead times vary greatly between suppliers, from 4-15 days out.
Gibraltar has minimal congestion this morning, with only one vessel waiting to be supplied by barge, MH Bland says. A supplier is delayed by several hours across Gibraltar and Algeciras.
Fuel availability is steady across grades in the ARA. Rotterdam’s VLSFO price has dipped $10/mt further below Gibraltar’s, to a $16/mt discount now.
Brent
Front-month ICE Brent crude has risen by $0.80/bbl on the day, to $84.84/bbl at 08.00 GMT.
The futures contract hit $85/bbl today for the first time in three years. Tightening global oil supplies, accelerated by power plants switching from coal and natural gas, has propped up Brent.
The US Energy Information Administration (EIA) estimates that the energy crunch could pull 500,000 b/d of oil-based fuels such as fuel oil and diesel to power plants. The oil market will be in a deficit of 700,000 b/d until January, before monthly incremental OPEC+ supply increases will close some of that gap, the EIA said.
OPEC+ members have reiterated that they will stick to their plan of increasing output by 400,000 b/d per month to April next year, defying calls to cool prices by pumping more.
Brent has seen some headwind from a surprise build in US crude inventories this week. The country’s stockpiles added 6.09 million bbls in the week to 8 October, when they reached at a seven-week high of 426.98 million bbls.
Technical indicators indicate that Brent is in overbought territory and could retreat by as much as $5-8/bbl, according to OANDA market analyst Jeffrey Halley.
“Any sell-off will be as short in duration as the fall, should it occur. Looking at the price action today though, it seems that oil could remain in heavily overbought territory for a few sessions yet,” he says.