European and African bunker prices have come up on the back of Brent, and rough weather continues to disrupt anchorage bunkering in Algoa Bay.
Changes on the day from Friday to 08.00 GMT today:
- VLSFO prices up in Rotterdam ($13/mt), Gibraltar ($11/mt) and Durban ($9/mt)
- LSMGO prices up in Rotterdam ($18/mt), Gibraltar ($11/mt) and Durban ($1/mt)
- HSFO prices up in Rotterdam ($12/mt) and Gibraltar ($3/mt)
Weather conditions are calm in the Gibraltar Strait, Canary Islands and Malta today. Three suppliers are running 3-6 hours behind schedule across Gibraltar and Algeciras, but there is no vessel congestion this morning, port agent MH Bland says. There are also slight delays to bunker schedules at Ceuta’s anchorage.
High swell and periods of strong winds has hampered bunkering at the Algoa Bay anchorage by Port Elizabeth in the past week. Gale strength wind gusts and swell above 4 metres is forecast today and will likely suspend bunkering. Calmer seas are forecast from tomorrow and for the rest of the week, and should allow for anchorage bunkering in Algoa Bay.
Port Elizabeth’s VLSFO price has risen to premiums of $26-29/mt over Durban, Richards Bay and Cape Town.
Brent
Front-month ICE Brent crude has climbed $0.87/bbl higher since Friday, to $72.98/bbl at 08.00 GMT today.
Shut in oil production in the US Gulf pushed the futures contract to four-week intraday highs of more than $73/bbl yesterday. Hurricane Ida has shut in around 95% of capacity in the Gulf of Mexico, according to the Bureau of Safety and Environmental Enforcement. All 11 US oil rigs were evacuated and 288, or about half of the platforms, were evacuated as producers braced for the impact of the hurricane. This makes up around 12% of total US capacity, the US government agency said.
Refineries, utilities and ports in Louisiana are struggling with blackouts and flooding after Ida made landfall. The region’s oil output is not expected to recover for several days, ING strategist Warren Patterson said today.
“Infrastructure needs to be assessed for damage, while those refiners who lost power will need to wait for it to be restored. If this is the case, it suggests that we could see further upside in refined product cracks,” Patterson said.
Traders will look for more price direction from the monthly OPEC+ meeting scheduled for tomorrow. The group is expected to stick to its plan to bring back 400,000 b/d of oil per month, according to a Reuters report citing three sources.
While the global supply-demand balance remains in a deficit, “OPEC+ has built in enough of a cushion that this market is still nowhere near having supply concerns,” OANDA analyst according to Ed Moya.