European and African bunker prices are up as Brent regains some of yesterday’s losses with support from the supply crunch in the US Gulf and robust Chinese crude demand.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Durban ($14/mt) and Rotterdam ($9/mt), and down in Gibraltar ($2/mt)
- LSMGO prices up in Durban ($32/mt), Rotterdam ($8/mt) and Gibraltar ($5/mt)
- HSFO prices up in Rotterdam ($7/mt), and steady in Gibraltar and Durban
Rotterdam’s VLSFO price has risen while Gibraltar’s price has been pulled slightly down by a lower-priced 500-1,500 mt stem, to narrow Rotterdam’s discount by $11/mt to $6/mt.
Gibraltar, Tanger Med and Ceuta currently have the lowest VLSFO prices in the Mediterranean region, pricing the fuel grade $6-10/mt lower than Las Palmas and $15-19/mt lower than Malta.
There is no bunker congestion for a second day in Gibraltar and Algeciras. A supplier has cleared its backlog in Algeciras, while two other suppliers across Gibraltar and Algeciras are running 2-5 hours behind schedule, according to port agent MH Bland.
Rough weather with strong winds and high swell could suspend bunkering in Port Elizabeth and the adjacent Algoa Bay anchorage on Thursday, Friday and Sunday.
Port Elizabeth’s VLSFO and LSMGO prices shot up far above Durban’s prices at the beginning of the month. Its VLSFO premium over Durban has hovered around $40/mt for the past two days.
Both Port Elizabeth and Durban’s VLSFO prices have surged in the past day.
Brent
Front-month ICE Brent has climbed $0.83/bbl higher on the day, to $72.55/bbl at 08.00 GMT.
The futures contract is up with support from capped production in the Gulf of Mexico and strong Chinese oil imports data.
Production is gradually coming back online in the Gulf as workers return, but 1.53 million b/d, or 84%, of production remains shut in after platforms and rigs were evacuated when Hurricane Ida was approaching.
According to estimates by the US Bureau of Safety and Environmental Enforcement, 18% of platforms and 45% of rigs in the Gulf are still unmanned.
Power outages and material damage from Ida still keeps five Louisiana refineries across Alliance, Norco, St. Charles, Meraux and Chalmette shut, Argus Media reports.
Chinese import data provided some upside for Brent. The world’s biggest crude importer took 10.49 million b/d of crude in August, an 8% increase from July, according to Reuters. Expectations of easing lockdown restrictions and Covid-19 under control has prompted Chinese crude buyers to target extra supplies at higher prices from November.
“The impressive China trade data has lifted fears over the China slowdown, which has led to higher oil prices in Asia,” OANDA market analyst Jeffrey Halley commented today.
Brent has bounced back after downward pressure yesterday. Saudi Aramco slashed oil selling prices to Asia amid weaker demand from some countries with partial lockdown measures in place.