Europe & Africa Market Update 3 Aug
Bunker fuel prices in Europe and Africa have dropped significantly, while prompt fuel availability is tight in the ARA.
IMAGE: The Europoort area in the Port of Rotterdam. Getty Images
Changes on the day from Friday to 09.00 GMT today:
- VLSFO prices down in Durban ($53/mt), Gibraltar ($42/mt) and Rotterdam ($35/mt)
- LSMGO prices down in Durban ($102/mt), Rotterdam ($48/mt) and Gibraltar ($35/mt)
- HSFO prices down in Rotterdam ($36/mt), Gibraltar and Durban ($27/mt)
- B30-VLSFO prices down in Rotterdam ($45/mt)
Regional bunker benchmarks have dropped significantly over the weekend, tracking the drop in Brent.
Rotterdam’s HSFO and VLSFO are at a discount of $28-34/mt to Gibraltar’s HSFO and VSLFO benchmarks.
The Dutch port’s LSMGO has a sharper $56/mt price discount to Gibraltar’s LSMGO.
Fuel availability is tight in the ARA for prompt delivery dates, with buyers advised lead times of 5-7 days to secure supplies, a trader told ENGINE.
Rotterdam’s conventional fuel sales declined 28% year-on-year across the first half of 2026, compared to the first half of last year, port authority data showed last week.
The port authority said there has been a visible shift of some bunker volumes to other ports, mainly due to implementation of RED III in Netherlands, which has increased the cost of bunkering compared to competing ports in the region.
ENGINE’s price data showed Rotterdam’s VLSFO held an average price premium of around $14/mt over VLSFO price in Belgium’s Antwerp during the first half of 2026, compared to the same period last year, when prices at both ports were almost at parity.
Meanwhile, gasoil stocks in the ARA fell 10% in July to their lowest level in nearly four years, according to Insights Global data.
On the other hand, fuel oil stocks have averaged 1% lower in July, compared to June's monthly average.
Brent
The front-month ICE Brent contract has declined by $4.30/bbl on the day from Friday, to trade at $83.98/bbl at 09.00 GMT.
Upward pressure:
Brent’s price has felt some upward pressure, as the prospect of worsening supply disruptions in the Middle East continues to hang over the market.
On Friday, Tehran launched attacks on US military assets, including the Ahmad al-Jaber Air Base in Kuwait and facilities at Bahrain’s Sheikh Isa Air Base.
The Middle East conflict has “spread well beyond Iran and the United States,” according to SPI Asset Management managing partner Stephen Innes.
The latest attacks come shortly after Saudi Arabian energy infrastructure came under attack, prompting Washington and Riyadh to launch a joint military operation against Iran-aligned militias.
“Saudi energy infrastructure has been attacked. Iraqi militias, the Houthis and other Iranian-aligned groups have widened the battlefield across the Gulf and Red Sea,” Innes remarked.
Downward pressure:
Oil prices have opened the week on a lower footing, after US President Donald Trump called off a planned round of military strikes on Iran, fuelling hopes of a diplomatic breakthrough.
“The perimeters of a deal have been agreed to,” Trump said on Truth Social, putting some downward pressure on Brent.
“The immediate threat of escalation has eased, but Iran has yet to confirm that a workable diplomatic understanding exists,” Innes said.
Additionally, Iran’s foreign minister Abbas Araghchi said that negotiations with Oman regarding a new shipping arrangement via the Strait of Hormuz are in its final stages.
“Until tankers begin moving safely through Hormuz again, claims of diplomatic progress should be treated cautiously,” Innes added.
By Nachiket Tekawade and Aparupa Mazumder
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