Europe & Africa Market Update 29 Jan

Fuel prices across European and African ports have gained, and longer lead times are recommended in Las Palmas due to rough weather.

IMAGE: Ships docked in the Port of Las Palmas, Gran Canaria, Spain. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($10/mt), Durban ($9/mt) and Gibraltar ($7/mt)
• LSMGO prices up in Gibraltar ($14/mt) and Rotterdam ($8/mt)
• HSFO prices up in Gibraltar ($11/mt), Durban ($6/mt) and Rotterdam ($3/mt)
• B30-VLSFO prices up in Gibraltar ($9/mt), and down in Rotterdam ($2/mt)

Conventional fuel prices have recorded increases over the past session, tracking Brent's rise.

The price of LSMGO at Las Palmas has gained by $20/mt over the past session, pricing the fuel $7/mt cheaper than Gibraltar's, compared to a wider $13/mt discount seen yesterday.

Conversely, Las Palmas' HSFO price has increased by $15/mt in the past session and is now priced $10/mt more than in Gibraltar.

Weather remains an issue in Las Palmas, with swells as high as 2 metres forecast in the port till 7 February.

Services at the outer anchorages are not possible due to the high waves, and bunkering is being carried out currently in the inner anchorage and at the berth, port agent MH Bland said. Due to limited capacity in both areas, there could be delays in bunkering, MH Bland said.

Consequently, bunker availability is tight for prompt dates, with at least 10 days of lead time recommended for all fuel grades, a trader said.

Brent

The front-month ICE Brent contract has gained by $2.04/bbl on the day, to trade at $69.81/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has risen by more than $2/bbl on renewed supply disruption concerns from the Middle East.

US President Donald Trump has warned of possible military action against Iran, as Washington continues its push to end the OPEC producer’s nuclear ambitions, Reuters reported. A US naval group has arrived in the region, the report added.

“Oil markets continue to strengthen amid growing concern over a possible escalation between the US and Iran,” two analysts from ING Bank noted.

The escalation could potentially disrupt supply from the region, market analysts said. Iran produces about 3.2 million b/d of crude oil.

“President Trump threatened another attack on Iran, urging Tehran to negotiate a nuclear deal,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “This raised the spectre of disruptions to its oil supply,” he added.

Downward pressure:

Kazakhstan’s Tengiz oilfield is expected to reach full production capacity this week, following an unplanned outage due to a fire. This news has capped some of Brent’s gains today.

In the US, the Federal Reserve (Fed) has decided to keep interest rates steady in the range of 3.50% to 3.75%, following three rate cuts in 2025.

The rate decision comes as the US dollar remains under pressure, trading close to a four-year low against major currencies and adding complexity to the Fed’s inflation outlook.

“Oil is the other inflation ghost that will not stay in the basement,” remarked SPI Asset Management managing partner Stephen Innes.

By Nachiket Tekawade and Aparupa Mazumder

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