Europe and Africa Market Update 27 Oct 2025
Benchmark fuel prices have decreased in European and African ports, and bunker supply is stable in Durban.
IMAGE: Aerial view of Durban port landscape. Getty Images
Changes on the day, from Friday, to 09.00 GMT today:
- VLSFO prices down in Durban ($26/mt), Rotterdam ($15/mt) and Gibraltar ($10/mt)
- LSMGO prices down in Rotterdam ($12/mt) and Gibraltar ($1/mt)
- HSFO prices down in Durban ($14/mt), Gibraltar ($9/mt) and Rotterdam ($7/mt)
Fuel prices have mostly declined in the three major ports over the weekend, tracking the slide in Brent futures.
Rotterdam's LSMGO price has dropped more sharply that Gibraltar's benchmark, widening the latter’s price premium by $11/mt.
Durban’s VLSFO price has seen the steepest fall among the three ports, narrowing its price premium over Gibraltar’s VLSFO by $16/mt over the weekend.
VLSFO in Durban is readily available with a short lead time of around two days, while HSFO availability is tighter and may require about a week, a trader told ENGINE.
Durban is currently experiencing bad weather conditions, with wind gusts of more than 25 knots and waves of over 2.5 meters forecast until 28 October, which could disrupt bunkering operations.
Brent
The front-month ICE Brent contract has declined by $0.76/bbl on the day from Friday, to trade at $65.09/bbl at 09.00 GMT.
Upward pressure:
Following a sanction-driven rally in the oil market last week, Brent crude has gained further upward momentum after officials from Washington and Beijing sketched out a trade-deal framework, easing US tariff fears and boosting demand growth expectations.
The news has alleviated fears of additional export curbs between the world's two biggest oil consumers that could depress global economic growth, Reuters reported.
“Positive developments in US-China trade talks over the weekend provided a boost to risk assets, including large parts of the commodities complex,” two analysts from ING Bank noted.
US Treasury Secretary Scott Bessent said in an interview with CBS that additional tariffs on China that were supposed to come into effect on 1 November are "effectively off the table" after a "very good two-day meeting" with Beijing's top negotiator.
US President Donald Trump and his Chinese counterpart Xi Jinping are scheduled to meet in South Korea on Thursday.
Downward pressure:
Oil has moved lower after official drilling figures showed an increase in US oil rigs. The total number of oil rigs increased by two over the week to 420, according to Baker Hughes.
The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.
Moreover, supply hikes by OPEC+ producers have also weighed on Brent’s price. Earlier this month, eight members of the group agreed to collectively increase their production by another 137,000 b/d in November.
In an oversupplied market, any signal of increased future supply can put downward pressure on Brent’s price.
By Nachiket Tekawade and Aparupa Mazumder
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