European and African bunker prices have moved up with Brent as three-quarters of oil production in the Gulf of Mexico remains shut in.
Changes on the day to 08.00 GMT today:
- VLSFO prices up in Durban ($4/mt) and Gibraltar ($2/mt), and steady in Rotterdam
- LSMGO prices up in Durban ($5/mt) and Gibraltar ($1/mt), and down in Rotterdam ($10/mt)
- HSFO prices up in Rotterdam ($5/mt), and steady in Gibraltar
More competitive VLSFO pricing in Hamburg has brought its price down to parity with Skaw, and within a $5/mt premium over Rotterdam. Suppliers in Hamburg and the ARA have priced the grade in a wide range recently, sources say.
Two vessels are waiting for barges to become ready in Gibraltar amid slight delays to bunker schedules, according to port agent MH Bland.
HSFO380 has been tight for prompt dates in Las Palmas, but a cargo arrived last week to replenish a supplier’s stocks. Lead times of around six days are still advised.
Las Palmas’ HSFO380 price has more than doubled its premium over Gibraltar in the past day, to $10/mt now.
Brent
Front-month ICE Brent has recouped losses from the previous session by rising $0.57/bbl on the day, to $72.52/bbl at 08.00 GMT.
Brent has seen some support from tighter US supplies. 77% of offshore oil production capacity remains shut in the Gulf of Mexico following Hurricane Ida. More and more platforms and rigs have come back to operation, but 13% of platforms and 36% of rigs remain unmanned after they were evacuated in the lead-up to Ida.
“… last night’s price increases have merely returned Brent and WTI back to roughly unchanged for the week. That suggests that the street is divided in the near-term direction, as disrupted Gulf of Mexico production is offset by global recovery nerves,” OANDA market analyst Ed Moya said.
US crude inventories decreased by a lower-than-expected 2.9 million bbls in the week to 3 September, according to American Petroleum Institute (API) figures and a poll of analysts cited by Reuters.
Official US data from the Energy Information Administration (EIA) is set to be published today at 15.00 GMT.
The EIA said yesterday it expects crude oil production in the Gulf of Mexico will come back online through September, and average 1.2 million b/d over the month. Production will normalise at 1.7 million b/d in the fourth quarter, the energy statistical agency predicts.