Bunker prices have risen with Brent in major European and African ports, and Gibraltar Strait bunkering could be disrupted by incoming weather.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Durban ($11/mt), Rotterdam and Gibraltar ($3/mt)
- LSMGO prices up in Gibraltar ($7/mt), Durban ($3/mt) and Rotterdam ($2/mt)
- HSFO prices up in Gibraltar ($2/mt), and down in Rotterdam ($2/mt)
A supplier is delayed by around half a day in Gibraltar. Three vessels are lined up waiting for the supplier’s barges to become ready. Another vessel is wating for a lack of space in the port, port agent MH Bland says.
Strong winds and swell are forecast in Gibraltar, Algeciras and Ceuta tomorrow. MH Bland expects bunker disruptions and possible delays.
Gibraltar and Algeciras’ VLSFO prices have moved in lockstep with Rotterdam and Antwerp in the past day, to maintain their premiums of around $18-22/mt to the ARA ports. Supply of all fuel grades remains readily available across the Gibraltar Strait and ARA.
Moderate swell from the north threatens to hamper outer anchorage deliveries in Las Palmas until Thursday morning. Tenerife is generally more sheltered from northern winds and swell, and can present an alternative bunker option when the weather is rough in Las Palmas.
Heavy swell and strong winds have kept bunkering in Algoa Bay suspended since yesterday, shipping agent Sturrock Grindrod said. Five vessels were delayed and at anchorage awaiting bunkers yesterday afternoon. Another seven vessels are expected to arrive today and tomorrow.
“Due to these conditions a backlog of supplies is expected of which suppliers will endeavor to clear as soon as reasonably possible. Weather conditions are forecasted to fluctuate throughout the week which may prove to have a negative impact on overall bunker supplies in Algoa Bay,” Sturrock Grindrod said.
Brent
Front-month ICE Brent crude has gained $0.43/bbl on the day to 08.00 GMT today, when it stood at $74.97/bbl.
The futures contract has regained some of its losses it made in the previous session. A sell-off yesterday was triggered by concerns over the solvency of China’s second-biggest property developer. If Evergrande defaults on its debt payments it could spill over and dent China’s economy.
“Evergrande’s woes are threatening the outlook for the world’s second largest economy and making some investors question China’s growth outlook and whether it is safe to invest there,” OANDA analyst Ed Moya said.
Support for Brent has come from Shell saying part of its offshore crude production in the Gulf of Mexico will be capped until next year. Hurricane Ida knocked most of Shell’s production capacity in Gulf offline three weeks ago. About 60% of capacity has now been restored, but facilities across its oil fields were heavily damaged.
More and more of the Gulf’s overall crude production capacity returns by the day. 18% of capacity remains shut in, down from a peak of around 95%, according to the latest estimate from the Bureau of Safety and Environmental Enforcement.
The market is looking ahead to the two-day US Federal Reserve (Fed) meeting starting today. Investors will be looking for clues to when the Fed will start tapering its massive asset purchasing programme. Signals of a tighter monetary policy from tapering could strengthen the dollar, and render Brent and other dollar-denominated commodities less attractive to investors