ENGINE: Global Market Update
Global bunker prices have dropped across ports, down from Friday’s levels and tracking lower Brent crude values.
Changes in the day to 08.00 GMT today:
- VLSFO prices down in Rotterdam ($18/mt), Fujairah ($12/mt), Houston ($11/mt), Singapore ($9/mt) and Gibraltar ($7/mt)
- LSMGO prices down in Fujairah ($21/mt), Singapore ($13/mt), Rotterdam ($9/mt), Gibraltar ($7/mt) and Houston ($6/mt)
- HSFO380 prices down in Fujairah ($21/mt), Singapore ($12/mt), Houston ($9/mt), Gibraltar ($5/mt), and Rotterdam ($4/mt)
Several vessels were delayed from bunkering in Gibraltar last Friday because of thick fog and “zero visibility” in the bay, but the weather has now cleared with only one vessel waiting to bunker today. There are no vessels waiting to bunker in Ceuta and Algeciras.
Rotterdam’s VLSFO price saw a significant drop today, falling by $18/mt from Friday’s prices, on the back of a lower-priced 500-1500mt stem in the bunkering hub. As a result, the price difference between HSFO380 and VLSFO has narrowed by $14/mt to stand at a low of $89/mt.
HSFO380 remains tight in Fujairah. Two of three suppliers have been offering the grade this week, and their earliest expected delivery dates have been pushed back to at least 25 August. VLSFO also requires up to seven days of lead time, while LSMGO stems are more readily available with 5 days in advance.
Brent
Front-month ICE Brent has come down by another $1.39/bbl on the day to 08.00 GMT today, when it stood at $69.6/bbl.
Brent has come under pressure as official data showed a slump in China’s economic activity in July, after Covid-19 cases surged and as the Delta variant has been spreading in the country. Oil demand has taken a hit in China in the past couple of weeks, after movement restrictions were introduced in some parts of the country in an effort to curb rising Covid-19 infections.
As a result, the country’s Ningbo-Zhoushan Meidong Container Terminal has been closed since Thursday, and all inbound and outbound traffic suspended after a port worker tested positive for Covid-19 in the port.