Bunker prices are mostly steady on the day, and bunkering faces weather disruptions in Port Elizabeth and Algoa Bay over the next week.
Changes on the day to 08.00 GMT today:
- VLSFO prices steady in Gibraltar and Durban, and down in Rotterdam ($1/mt)
- LSMGO prices up in Durban ($7/mt) and Rotterdam ($2/mt), and down in Gibraltar ($2/mt)
- HSFO prices up in Gibraltar ($7/mt), and down in Rotterdam ($1/mt)
Gibraltar’s VLSFO price has held at a narrow $5/mt premium over Rotterdam. The fuel grade has been trading at closer levels between the two bunker hubs this month, with Gibraltar’s price occasionally dipping below Rotterdam’s.
VLSFO prices in Gibraltar and Rotterdam since 1 January
There has been minimal bunker congestion in Gibraltar this week, and no vessels are waiting to bunker in the port today, port agent MH Bland says. Fewer ships have called at Gibraltar this week – either for bunkers or for other reasons. Total arrivals to the port more than halved from a recent peak of 117 vessels on 21 July, to 57 yesterday, according to vessel tracker MarineTraffic.
Durban’s LSMGO dropped below Port Elizabeth’s price for the grade last week. In the past day, Durban’s price has made fresh gains, but remains at an $11/mt discount to Port Elizabeth.
LSMGO prices in Durban and Port Elizabeth since 1 June
High swell of more than 3 metres is set to disrupt bunkering in Port Elizabeth and Algoa Bay today. Bunkering is typically suspended with swells above 2.5 metres or wind speeds above 25 knots. The swell is forecast to range between 2.7-5.2 metres until Tuesday next week.
A cyber attack has crippled port operations across South Africa since it hit the IT systems of state logistics firm Transnet on 22 July. Container handling and other key port services have been performed manually, but Transnet said yesterday its systems are gradually coming back online.
Brent
ICE Brent September crude has edged $0.20/bbl higher on the day, to $74.71/bbl at 08.00 GMT.
Brent was trading close to $75/bbl earlier today, buoyed by data from the American Petroleum Institute (API) pointing to growing US oil demand as US crude and gasoline inventories declined on the week. Crude inventories came down by 4.73 million bbls in the week to 23 July, and gasoline inventories by 6.23 million bbls, according to the API.
“US crude inventories fell more than expected last week, underscoring strong demand in North America,” DailyFX strategist Margaret Yang said.
Official US oil data on oil stocks will be released via the Energy Information Administration (EIA) at 14.30 GMT today, and could put more upward pressure on Brent if it confirms the stock draws.
Further gains for Brent continue to be capped by a global rise in new daily Covid-19 cases. US cases have spiked with the rapid spread of the Delta variant, and Sydney has extended its lockdown by four weeks as cases rise in Australia.
Investors will also closely monitor today’s Federal Reserve meeting for clues on the central bank’s monetary policy. The Fed is not expected to raise interest rates until 2023, but will start tapering its massive asset purchasing programme in good time before then. If the tapering timeline is pushed back more than analyst expect, it will likely weigh on the US dollar and spike prices for Brent and other dollar-denominated commodities, DailyFX’s Yang said.