Europe & Africa Market Update 19 Jan

Bunker prices across European and African ports have moved in mixed directions, and rough weather causes suspension in bunkering off Malta.

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

Changes on the day, from Friday, to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($11/mt) and Durban ($1/mt), and down in Gibraltar ($3/mt)
• LSMGO prices up in Rotterdam ($4/mt), and down in Gibraltar ($3/mt)
• HSFO prices up in Gibraltar ($4/mt) and Durban ($1/mt), and unchanged in Rotterdam
• Gibraltar B30-VLSFO premium over VLSFO down $13/mt to $323/mt

Off Malta, LSMGO costs $10/mt cheaper than in Gibraltar, while VLSFO prices in both locations are now at par. HSFO prices is also just $3/mt cheaper at the Mediterranean port than off Malta.

Hi5 spreads in both locations are between $52-$55/mt.

Rough winds of more than 35 knots and waves of up to 4 metres are forecast off Malta between 19-20 January.

This has led to the cancellation of all operations in the bunkering areas, port agent MH Bland said.

Bunkering operations could resume on Wednesday, a trader told ENGINE.

Brent

The front-month ICE Brent contract has declined by $0.50/bbl on the day from Friday, to trade at $63.58/bbl at 09.00 GMT.

Upward pressure:

Brent crude has gained some support amid elevated geopolitical risks in the Middle East.

The US Treasury announced sanctions on Iran’s Secretary of the Supreme Council for National Security and 18 individuals and entities, including a UAE-based shipping firm.

Market participants believe that a potential US intervention in the region could disrupt oil flows from the OPEC member nation.

“The US continues to boost its military presence in the Middle East. At least one aircraft carrier is moving to the region,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Downward pressure:

Brent crude’s price has moved lower following the re-emergence of tariff friction between the US and major European nations.

In a social media post, US President Donald Trump threatened to impose a 10% tariff on eight European countries for opposing US control of Greenland.

The US will charge a 10% import tax on all goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland from 1 February.

The tariff would increase to 25% on 1 June if no deal is reached by then on the “complete and total purchase of Greenland” by the US, Trump said.

Market analysts warn that high tariffs could dampen global economic growth, eroding oil demand and putting downward pressure on prices.

The headwinds facing Brent are “only getting stronger with President Trump’s latest threat of tariffs on several European countries,” two analysts from ING Bank remarked.

By Nachiket Tekawade and Aparupa Mazumder

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