Europe & Africa Market Update 11 Feb

Bunker fuel prices across European and African ports have shown mixed movements, while fuel is promptly available off Malta.

IMAGE: Tankers during a bunker operation off Malta. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($9/mt) and Durban ($7/mt), and unchanged in Rotterdam
• LSMGO prices up in Gibraltar ($15/mt) and Rotterdam ($5/mt)
• HSFO prices up in Durban ($4/mt), and down in Rotterdam ($4/mt) and Gibraltar ($3/mt)
• B30-VLSFO prices up in Rotterdam ($4/mt) and Gibraltar ($3/mt)

Even though LSMGO prices at both ports recorded gains over the past session, Gibraltar's premium to Rotterdam has crossed $50/mt, with the Mediterranean port now trading $55/mt higher than the Dutch port.

On the other hand, Malta’s LSMGO price has slumped $31/mt in a single session. A significantly lower-priced 150-500 mt stem, fixed at $714/mt, has put downward pressure on the benchmark.

Consequently, LSMGO off Malta is now trading at a $28/mt discount to Gibraltar, whereas yesterday, it was $18/mt costlier.

Fuel availability is stable off Malta, and a notice of 3-5 days is required to bunker any fuel type, according to a trader.

Rough westerly winds of more than 30 knots and high swells between 2-4 metres are forecast between 11-17 February intermittently, which may further disrupt bunkering in some exposed areas.

Brent

The front-month ICE Brent contract has gained by $0.20/bbl on the day, to trade at $69.60/bbl at 09.00 GMT.

Upward pressure:

Brent futures have found support amid rising geopolitical risk, as talks between the US and Iran remain fragile. Negotiations are ongoing but uncertain, sustaining a risk premium, with continued sanctions pressure and tariff threats linked to Iranian trade, according to a Reuters report.

“Oil prices continue to hold firm… as persistent uncertainty over how talks between the US and Iran evolve,” two analysts from ING Bank said.

Additional support has come from signs of a narrowing supply surplus, underpinned by improved demand from India.

Indian refiners are reportedly steering clear of Russian crude purchases to help secure a trade agreement with the US, while increasing imports from the Middle East and West Africa, Reuters reported.

Downward pressure:

Brent futures have come under some downward pressure after the American Petroleum Institute (API) reported a sharp increase in US crude inventories.

US crude oil stocks rose by 13.4 million bbls in the week ending 6 February, according to API estimates cited by Trading Economics. An increase in crude inventories typically points to softer demand and can weigh on oil prices.

“The American Petroleum Institute’s stocks data for the week to February 6 was bearish,” said Vandana Hari, founder of VANDA Insights.

By Nachiket Tekawade and Tuhin Roy

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