Europe & Africa Market Update 29 Oct

Bunker prices in major European and African ports have moved in mixed directions, while longer lead times are recommended off Skaw and in Gothenburg.

IMAGE: Aerial view of Port of Gothenburg. Gothenburg Port Authority

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($2/mt), Rotterdam ($1/mt), and down in Durban ($7/mt)
• LSMGO prices up in Durban ($26/mt), and down in Gibraltar ($49/mt) and Rotterdam ($29/mt)
• HSFO prices up in Durban ($3/mt), Rotterdam ($2/mt), and down in Gibraltar ($4/mt)
• B30-VLSFO price down in Rotterdam ($57/mt)

VLSFO and HSFO prices have remained steady in Rotterdam and Gibraltar in the past day, while LSMGO prices have fallen sharply.

Gibraltar’s LSMGO price has fallen more sharply than Rotterdam's. Two lower-priced offers for 150-500 mt of LSMGO in Gibraltar at $1,523-1,544/mt have put downward pressure on the benchmark.

The LSMGO price off Denmark’s Skaw has also dropped sharply by $42/mt. A lower-priced 150-500 mt stem fixed at $1,488/mt has pulled the benchmark lower.

The LSMGO price in Sweden’s Gothenburg has seen a lesser drop of $28/mt in the past day. This has widened Skaw’s LSMGO discount to Gothenburg by $14/mt to $37/mt.

VLSFO and HSFO prices in both Skaw and Gothenburg have also dropped. Each grade costs almost the same in both ports.

Fuel availability is tight in both locations, with recommended lead times of around 10 days for deliveries of any fuel grade, a trader said.

Both locations are experiencing rough westerly winds of around 25 knots. There have been some supply backlogs in both locations, and they are expected to clear by tomorrow, a source said.

Brent

The front-month ICE Brent contract has declined by $1.99/bbl on the day, to trade at $113.49/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has felt some upward pressure amid signs that Washington could resume military action against Iran in the near term.

The US has warned several Gulf countries to prepare for a short but intense campaign against Tehran, the Wall Street Journal reported.

Besides, another draw in US crude stocks has supported Brent’s price today.

US commercial crude stocks fell by 1.90 million bbls to 410.60 million bbls in the week ending 23 October, according to the US Energy Information Administration (EIA).

This was the fourth straight weekly drop in US crude inventories, ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Brent’s price has come under pressure amid renewed US efforts to revive peace negotiations with Iran.

US Vice President JD Vance sent a letter to Iran’s Security Council chief Mohsen Rezaei, in a bid to restart talks, the Wall Street Journal reported, citing US officials.

Iran’s Foreign Minister Abbas Araghchi said yesterday that Tehran continues to give diplomacy a chance to succeed, Reuters reported.

By Nachiket Tekawade and Aparupa Mazumder

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