Bunker prices across Europe and Africa have moved higher, while fuel availability remains tight for prompt deliveries in the Gibraltar Strait.
Changes on the day to 09.00 GMT today:
- VLSFO prices up in Gibraltar ($49/mt), Durban ($43/mt) and Rotterdam ($34/mt)
- LSMGO prices up in Durban ($178/mt), Gibraltar ($101/mt) and Rotterdam ($65/mt)
- HSFO prices up in Durban ($47/mt), Rotterdam ($36/mt) and Gibraltar ($28/mt)
- B30-VLSFO prices up in Gibraltar ($72/mt) and Rotterdam ($57/mt)
Regional bunker benchmarks have gained in the past day, tracking the rise in Brent.
Gibraltar’s LSMGO price has increased more sharply than Rotterdam’s LSMGO price. Several higher-priced stems of up to than 500 mt, fixed in Gibraltar between $1,274-1,352/mt, have provided support to the benchmark price.
The port’s VLSFO benchmark has also gained more than its HSFO price. This has widened the port’s Hi5 spread by $23/mt over the past day, increasing the economic benefit for scrubber-fitted ships to bunker HSFO in the port.
Fuel availability is tight for prompt supplies in the Gibraltar Strait ports, with buyers advised enquiring about stems around 5-7 days ahead to get good coverage, a trader said.
There are 10 vessels currently awaiting bunkers in the Port of Gibraltar, and some buyers could run around 6-8 hours late on deliveries, port agent MH Bland said.
The front-month ICE Brent contract has gained by $5.51/bbl on the day, to trade at $94.29/bbl at 09.00 GMT.
Brent crude’s price has gained by more than $5/bbl, as hopes of a temporary US-Iran ceasefire have faded after US President Donald Trump ruled out any chances of immediate talks.
The US Central Command (CENTCOM) has conducted the 11th consecutive day of strikes against Iran, targeting Tehran’s maritime capabilities, aircraft hangars, drone storage facilities and logistics infrastructure, it said.
“Oil prices pushed higher again yesterday amid mounting supply risks as hopes fade for a temporary ceasefire between the US and Iran,” two analysts from ING Bank noted.
Additionally, Yemen’s Iran-backed Houthi militants imposed a maritime embargo on vessels carrying Saudi Arabian crude through the Bab al-Mandeb Strait into the Red Sea.
Three Saudi oil tankers reversed course in the Red Sea following the Houthi announcement, Reuters reported.
“The Houthis’ announced maritime blockade on Saudi Arabia has shippers nervous, with several tankers moving to avoid the Bab el-Mandeb Strait,” ING Bank’s analysts added.
Brent’s price felt some downward pressure following an unexpected increase in US crude stocks.
US crude oil inventories increased by 2.6 million bbls in the week ending 17 July, according to estimates from the American Petroleum Institute (API).
A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent’s price.
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