Bunker prices have declined for a second day in Europe and Africa, and outer anchorage bunkering in Las Palmas could be disrupted by another bout of rough weather.
Changes on the day to 08.00 GMT today:
- VLSFO prices down in Gibraltar ($8/mt), Rotterdam ($5/mt) and Durban ($3/mt)
- LSMGO prices steady in Durban, and down in Gibraltar ($20/mt) and Rotterdam ($10/mt)
- HSFO prices down in Rotterdam and Gibraltar ($1/mt)
All fuel grades remain tight in the Gibraltar Strait. A supplier is unable to commit to deliveries until the end of the October after running out earlier this month. Other suppliers have no issues and can supply prompt.
Gibraltar’s VLSFO price has come down against Rotterdam this week, to a $15/mt premium now.
A couple of suppliers are running up to half a day behind schedule in Gibraltar today. One vessel is waiting to bunker. There was a bit of wind and swells in the Gibraltar Strait yesterday, but delivery schedules were not severely impacted, according to MH Bland.
Swells are forecast to pick up in Las Palmas from tomorrow and well into next week. Disruptions and delays to outer anchorage bunkering are likely if weather conditions match the forecast. The port’s supply capacity at inner anchorage and at berth is much more limited and can easily get congested when outer anchorage bunkering is suspended.
Brent
Front-month ICE Brent has shed $0.64/bbl on the day, to $84.22/bbl at 08.00 GMT today.
China said yesterday it intends to take measures to mitigate its energy crunch. A critical coal shortage has spiked prices in the country – the world’s biggest energy consumer – and had a knock-on impact on wider energy markets.
Short supply of coal and natural gas has prompted power plants to look towards fuel oil and diesel as feedstock. Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said the switch from gas to crude oil and oil products could amount to 500,000-600,000 b/d if the winter gets cold, according to Reuters.
Following recent record highs for Chinese coal futures prices, China’s National Development and Reform Commission (NDRC) said yesterday it does not rule out intervening in the futures market. Coal remains China’s primary feedstock for power generation, and futures prices have decoupled from the fundamentals, the NDRC said.
A bigger-than expected US crude stock draw, as measured by the American Petroleum Institute (API), has also weighed on Brent in the past day. US crude inventories grew by 3.29 million bbls in the week to 15 October, overshooting analyst expectations by around 1 million bbls, according to a poll by Oilprice.com.
Official US crude stocks data from the Energy Information Administration (EIA) is scheduled for release at 14.30 GMT today.