Europe & Africa Market Update 13 Jan

Most bunker prices across European and African ports have moved higher, while VLSFO supplies are tighter than other grades in the ARA hub.

IMAGE: The Europoort area in the Port of Rotterdam. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($9/mt), Gibraltar ($8/mt) and Rotterdam ($7/mt)
• LSMGO prices up in Gibraltar ($13/mt), and down in Rotterdam ($4/mt)
• HSFO prices up in Rotterdam, Gibraltar ($5/mt) and Durban ($3/mt)
• B30-VLSFO price up in Rotterdam ($22/mt) and Gibraltar ($7/mt)

Most bunker fuel prices have gained in the three major ports, tracking Brent's increase.

Gibraltar’s LSMGO price has recorded the steepest increase in the past session, widening its premium over Rotterdam by $17/mt in a single day.

Conversely, at Rotterdam, the LSMGO price has dipped as a lower-priced 150-500 mt stem, fixed at $602/mt, weighed down on the price.

The Dutch port's B30-VLSFO price has increased more than in Gibraltar over the past session, narrowing its price discount by $15/mt.

VLSFO availability remains tight in the ARA bunkering hub, with suppliers requesting lead times of more than eight days, a trader told ENGINE. LSMGO and HSFO deliveries are available more promptly, with a notice of 2-4 days, the trader added.

Brent

The front-month ICE Brent contract has gained by $1.41/bbl on the day, to trade at $64.61/bbl at 09.00 GMT.

Upward pressure:

Escalating political unrest in Iran has pushed Brent crude’s price close to $65/bbl.

US President Donald Trump has vowed to impose 25% tariff on all imports from countries that are still “doing business” with Iran, amid nationwide protests demanding a change in regime in the Islamic Republic.

“Crude oil prices were steady as the market frets about the potential impact of rising unrest in Iran on oil supplies,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

If imposed, the tariff could strain Washington’s ties with Iran’s trade partners, including major economies such as India, Turkey and China, according to market analysts.

“The possible disruption of almost 2mb/d [2 million b/d] has tempered concerns over a global glut of oil,” Hynes added.

Downward pressure:

Brent’s price has felt some downward pressure following news that Venezuela is expected to resume oil exports soon.

“US President Trump signed an executive order to safeguard the Latin American [Venezuela] country’s oil revenue held in US Treasury accounts from the nation’s creditors,” Hynes said.

Last week, Trump said Venezuela’s interim administration will turn over about 50 million bbls of sanctioned oil, to be sold at the market price.

By Nachiket Tekawade and Aparupa Mazumder

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