Europe & Africa Market Update 27 Apr

Most bunker benchmarks at European and African ports have moved in mixed directions, while bunker availability is stable in Istanbul.

IMAGE: Aerial view of a cargo ship in transit in Istanbul, Türkiye. Getty Images

Changes on the day from Friday to 09.00 GMT today:

• VLSFO prices up in Durban ($31/mt), Gibraltar ($8/mt) and Rotterdam ($6/mt)
• LSMGO prices up in Gibraltar ($12/mt) and Rotterdam ($8/mt), and down in Durban ($71/mt)
• HSFO prices down in Gibraltar ($23/mt), Durban ($22/mt) and Rotterdam ($5/mt)
• B30-VLSFO prices down in Gibraltar ($15/mt) and Rotterdam ($10/mt)

Gibraltar’s HSFO price has fallen significantly since Friday, while the port’s VLSFO price has edged up. This has widened the port’s Hi5 spread by around $31/mt in a single day.

This has significantly increased the economic benefit for scrubber-fitted ships to bunker the cheaper priced HSFO in the port.

The price of LSMGO in Gibraltar and Rotterdam has edged higher over the weekend.

Meanwhile, LSMGO price in Turkey’s Istanbul has fallen by around $64/mt since Friday. An LSMGO stem of less than 50 mt, fixed at a low price of $1,395/mt, has weighed on the benchmark’s price.

The price decline has narrowed its price premium over Gibraltar's by around $76/mt over the weekend.

VLSFO and HSFO prices in the Turkish port have also dropped since Friday.

Fuel availability remains stable in Istanbul and LSMGO, HSFO, VLSFO and ULSFO supplies are available on a prompt basis, a local supplier said.

Strong winds of around 20-25 knots are forecast in the area on Monday, and suppliers may carry out deliveries taking safety into consideration.

Brent

The front-month ICE Brent contract has increased by $1.41/bbl on the day from Friday, to trade at $107.70/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has risen, inching towards $108/bbl, as peace talks between US and Iran remain stalled and vessel movement through the Strait of Hormuz remains restricted.

Hopes of reviving negotiations between the two countries faded over the weekend after US President Donald Trump cancelled his envoys Steve Witkoff and Jared Kushner’s planned visit to Islamabad on Saturday.

Meanwhile, Iran’s Foreign Minister Abbas Araqchi met mediators in Oman and Pakistan before travelling to Russia.

“Embarking on timely tour of Islamabad, Muscat, and Moscow. Purpose of my visits is to closely coordinate with our partners on bilateral matters and consult on regional developments,” Araqchi said in a social media post on Friday.

Separately, the US has vowed to continue blockading ships doing business with Iran as they pass through the Strait of Hormuz.

“That blockade is ongoing and continues to become more effective and stronger,” US secretary of war Pete Hegseth said during a press briefing on Friday.

Downward pressure:

Brent’s price felt some downward pressure following an increase in the US crude oil stocks.

Commercial US crude oil inventories increased by 1.9 million bbls to about 466 million bbls in the week ending 17 April, according to data from the US Energy Information Administration (EIA).

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 Shilpa Sharma

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