Europe & Africa Market Update 22 Sep

European and African bunker prices have mostly declined, while fuel availability is tight in Durban.

IMAGE: Aerial view of Durban port landscape. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Durban ($46/mt), and down in Gibraltar ($29/mt) and Rotterdam ($24/mt)
• LSMGO prices down in Durban ($63/mt), Rotterdam and Gibraltar ($54/mt)
• HSFO prices down in Durban ($38/mt), Gibraltar ($24/mt) and Rotterdam ($17/mt)
• B30-VLSFO prices down in Gibraltar ($25/mt) and Rotterdam ($15/mt)

Bunker fuel prices have mostly declined in regional ports, tracking the fall in Brent.

Conversely, Durban’s VLSFO price has surged considerably in the past session.

This has flipped Durban’s VLSFO price to a $15/mt price premium over the grade offered in Port Louis, compared to a $55/mt discount seen yesterday.

Durban’s VLSFO price is also trading at premiums of more than $100/mt compared to the grade offered off Walvis Bay.

Fuel availability is tight in Durban, with buyers advised lead times of 10-15 days to secure deliveries of any fuel grade, a trader told ENGINE.

At least six ships are scheduled to call for bunkering in Durban between 22 September – 5 October, according to shipping agent Trade Ocean.

Rough north-easterly winds of more than 30 knots and swells higher than 3 metres are forecast in Durban on 26 September, which may result in some disruptions to bunkering in the port.

All bunkering activities in Durban take place within port limits, while no bunkering takes place at anchorage, a source told ENGINE.

Brent

The front-month ICE Brent contract has declined by $2.57/bbl on the day, to trade at $99.33/bbl at 09.00 GMT.

Upward pressure:

Brent crude's price has felt some upward pressure as persistent Middle East tensions continue to support risk premiums.

The US has intensified pressure on Iran, warning that it will shut down Iranian airlines starting tomorrow.

Last week, Washington passed a new bill that extends the Iran Sanctions Act of 1996 through 2031, allowing the US President to impose sanctions on entities doing business with Iran's energy sector.

Downward pressure:

Brent crude's price has shed last week's gains, as the market shifted its focus to the United Nations General Assembly summit scheduled to take place in New York this week.

Iranian President Masoud Pezeshkian will be present at the high-stakes summit.

Market participants are hoping for a diplomatic breakthrough at the summit, banking on peace talks to pave the way for a quick resolution of the Middle East conflict – ultimately reopening the Strait of Hormuz to commercial navigation.

US President Donald Trump said that he is open to meeting his Iranian counterpart on the sidelines of the summit, according to media reports.

Brent crude's price moved lower "as markets weighed hopes for constructive discussions at this week's UN General Assembly," two analysts from ING Bank reported.

By Nachiket Tekawade and Aparupa Mazumdar

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