European and African bunker prices are hovering close to two-months highs after a day of steady levels.
Changes on the day to 08.00 GMT today:
· VLSFO prices steady in Rotterdam, and down in Durban ($3/mt) and Gibraltar ($2/mt)
· LSMGO prices steady in Gibraltar, and down in Rotterdam ($3/mt) and Durban ($2/mt)
· HSFO prices up in Rotterdam ($1/mt), and down in Gibraltar ($4/mt)
The little bunker congestion that was in Gibraltar yesterday has now been cleared, port agent MH Bland says. Calm weather has allowed for smooth bunker operations across the Gibraltar Strait, Canary Islands and Malta in recent weeks. These locations are often exposed to rough weather during the stormier fall, winter and spring months.
Bunkering could get disrupted from highs swell at Las Palmas’ outer anchorage from tonight and tomorrow morning, and again from Tuesday next week. Malta has strong winds and swell forecast on Friday in a week.
Port Elizabeth and Algoa Bay are set to receive several bouts of near gale-strength wind, and swell pushing 3 metres, over the coming week. Rough weather delayed several bunker deliveries in Algoa Bay this week, and may also delay some next week.
Algoa Bay’s bunker prices remains at wide premiums over Durban, Cape Town and Richards Bay.
Algoa Bay might still present the more attractive option as ships supplied at anchorage do not incur $15,000-20,000 calling costs as they do in ports. Ship crew calling at South African ports also have to test for Covid-19. A positive test will trigger a 10-day quarantine for the ship.
Brent
Front-month ICE Brent has slipped $0.22/bbl lower on the day, to $75.25/bbl at 08.00 GMT.
Brent is on track to gain more than $2/bbl on the week, however. The future has drawn support from an extended period of capped crude oil production in the Gulf of Mexico. About 95% of production was shut in as producers braced for incoming Hurricane Ida nearly three weeks ago.
Energy Information Administration (EIA) data showed this week that after nearly two weeks of capped production, US crude stockpiles had slumped to two-year lows on 10 September.
“Crude prices continued to climb higher after the EIA oil inventory report showed a bigger-than-expected draw,” OANDA analyst Ed Moya said.
That production has gradually come back online. The share of shut-in production had dropped to 28% yesterday, according to an estimate by the Bureau of Safety and Environmental Enforcement.