Europe & Africa Market Update 12 Nov

Bunker prices in major European and African ports have mostly gained, while prompt fuel availability is tight in the Gibraltar Strait.

IMAGE: View from the Rock of Gibraltar, UK to Algeciras, Spain. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($27/mt), Rotterdam ($4/mt), and down in Durban ($19/mt)
• LSMGO prices up in Gibraltar ($13/mt), Rotterdam ($9/mt), and unchanged in Durban
• HSFO prices up in Gibraltar ($17/mt), and down in Rotterdam ($1/mt)
• B30-VLSFO price down in Rotterdam ($3/mt)

Gibraltar’s VLSFO price has increased more sharply than Rotterdam’s. This has widened Gibraltar’s VLSFO premium over Rotterdam by $23/mt.

Gibraltar’s LSMGO price holds a wide $184/mt premium over Rotterdam’s.

Rough weather has hit Gibraltar, with winds of around 25 knots and swells of more than 1.5 metres.

Inbound traffic has been suspended in Gibraltar due to the rough weather, port agent MH Bland said. Operations are still possible within the outer port limits.

There are currently 14 vessels awaiting bunkers in Gibraltar, the port agent said. Some suppliers are reporting delays of more than 12 hours, the port agent said.

There is congestion at the inner anchorages of neighbouring Algeciras, MH Bland said.

All operations are suspended at Ceuta’s anchorage due to adverse weather conditions, while ex-pipe deliveries continue, subject to pilot approval, the port agent added.

Fuel availability is tight for prompt supplies in the Gibraltar Strait, with buyers advised to book 6-7 days ahead for good coverage from suppliers, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $1.21/bbl on the day, to trade at $92.76/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has found some support as Iran hardened its stance against the US.

Iran’s security council secretary Mohsen Rezaei said in a televised interview that Iran will not allow any enriched nuclear material to leave the country and warned of consequences if the US launches new strikes, Reuters reported.

Washington has said nuclear issues must be part of any initial negotiations to end the war, Reuters reported.

Rezaei also dismissed claims that talks with Washington are under way and said reports of a recent meeting in Qatar were “pure lies” meant to calm energy markets and curb oil prices.

Crude oil exports from the Middle East “continue to rely on alternative routes around the Strait of Hormuz, leaving supply vulnerable to further disruption,” two analysts at Dutch bank ING said.

Downward pressure:

Brent’s gains have been capped by a recovery in Middle East oil output and a build in US crude stocks.

OPEC’s crude production rose by almost 2 million b/d in October to 27.16 million b/d, led by Saudi Arabia, Iraq and Kuwait, ING’s analysts said. Output from Saudi Arabia, the group’s de facto leader, climbed to 9.2 million b/d, close to pre-war levels.

Meanwhile, US crude oil inventories rose by 9 million bbls in the week ending 6 November, 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.

By Nachiket Tekawade and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online