Europe & Africa Market Update 13 Nov

Bunker prices in major European and African ports have mostly gained, and prompt fuel supplies are tight in the ARA ports.

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

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($32/mt), Rotterdam ($29/mt) and Durban ($23/mt)
• LSMGO prices up in Durban ($70/mt) and Rotterdam ($47/mt), and down in Gibraltar ($23/mt)
• HSFO prices up in Durban ($31/mt), Gibraltar ($25/mt) and Rotterdam ($19/mt)
• B30-VLSFO prices up in Rotterdam ($26/mt) and Gibraltar ($22/mt)

Bunker prices have mostly increased in the past day, tracking the gain in Brent price.

Conversely, Gibraltar’s LSMGO price has declined. A 50-150 mt stem was fixed at a low price of $1,299/mt.

Meanwhile, Rotterdam’s LSMGO price has seen a significant increase.

This has narrowed Rotterdam’s LSMGO price discount to Gibraltar by $70/mt in the last day to $114/mt.

Rotterdam’s VLSFO price is also at a steep $101/mt discount to Gibraltar, while its HSFO price is at an $80/mt discount to Gibraltar.

Rotterdam’s HSFO price has fallen more sharply than its VLSFO in the last two weeks. Its HSFO price has fallen by $149/mt since 30 October, while its VLSFO price has dropped $72/mt.

This has doubled the port’s Hi5 spread in that period from $73/mt to $150/mt.

Rotterdam’s LSMGO price has fallen by $181/mt since 30 October, from $1,447/mt to $1,266/mt.

Independently held fuel oil stocks in the ARA region have averaged 6% higher in November so far compared with October’s monthly average, while gasoil inventories - which include diesel and heating oil - have risen by 1% so far in November compared with October.

Fuel availability is tight for prompt supplies in the ARA ports, with buyers recommended a lead time of 5-7 days to get good coverage from suppliers, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $3.36/bbl on the day, to trade at $96.12/bbl at 09.00 GMT.

Upward pressure:

Brent has come under upward pressure after US President Donald Trump said Washington does not need a deal with Iran.

“We don’t need a deal with Iran. Those days have long since passed,” Trump wrote on social media platform Truth Social yesterday.

He added that the US controls Iran’s money and the Strait of Hormuz.

“Developments in the Strait of Hormuz remain the key driver for the oil market,” two analysts from ING Bank noted.

Attacks on commercial vessels transiting the Persian Gulf have also continued. Iran’s military said yesterday that four oil tankers were hit by explosions in the Strait of Hormuz after ignoring its warnings, Reuters reported.

“An improvement in regional flows would allow more of the geopolitical premium to unwind, although continued disruptions leave the market vulnerable to renewed upside,” ING Bank’s analysts added.

Downward pressure:

Brent’s gains have been capped by a rise in US crude stocks.

Commercial US crude oil inventories rose by 4.7 million bbls to 414.4 million bbls in the week ending 6 November, according to the US Energy Information Administration (EIA).

A build in US crude stocks typically indicates lower demand for oil and can put downward pressure on Brent’s price.

By Nachiket Tekawade and Aparupa Mazumder

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