Europe & Africa Market Update 9 Feb

Most fuel prices across European and African ports have slipped, and congestion remains high in Gibraltar after a resumption in operations.

IMAGE: Aerial view of Gibraltar Harbour with dark storm clouds in the background. Getty Images

Changes on the day, from Friday, to 09.00 GMT today:

• VLSFO prices down in Rotterdam ($13/mt), Durban ($7/mt) and Gibraltar ($3/mt)
• LSMGO prices down in Rotterdam ($20/mt) and Gibraltar ($11/mt)
• HSFO prices unchanged in Gibraltar, and down in Durban ($9/mt) and Rotterdam ($6/mt)
• B30-VLSFO prices down in Rotterdam ($10/mt) and Gibraltar ($4/mt)

Bunker fuel prices have mostly fallen in the three major ports, tracking the fall in Brent’s price.

Although Ceuta’s LSMGO price slumped $48/mt over the weekend, it is now priced around $44/mt more than in Gibraltar, narrower than Friday's premium of $81/mt.

Bunkering LSMGO in Algeciras is currently $8/mt cheaper than in Gibraltar.

The Gibraltar strait ports have been facing adverse weather for the past few weeks, which has led to frequent suspensions of port operations and traffic.

Bunkering operations have resumed in Gibraltar as of Monday morning, port agent MH Bland said. Suppliers are facing large backlogs as congestion remains high at the port, with around 18 vessels currently awaiting bunkers, MH Bland said.

Operations in Algeciras are limited to Anchorage B, while rest of the anchorage remains closed, MH Bland said. In Ceuta, only ex-pipe deliveries are being carried out, subject to pilot’s criteria, the port agent added.

Longer lead times are being advised at the ports for all fuel types, a trader said.

High winds of more than 25 knots are forecast until mid-February in the area, which may lead to more disruptions.

Brent

The front-month ICE Brent contract has declined by $0.83/bbl on the day from Friday, to trade at $67.41/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price has found some support after the European Commission (EC) proposed a 20th package of sanctions against Russia, a move that could significantly tighten curbs on Moscow’s energy trade.

If implemented, the sanctions will prevent EU-based firms from providing shipping, insurance, financing and other maritime services for Russian crude at any price.

“On energy, we introduce a full maritime services ban for Russian crude oil. It will slash further Russia's energy revenues and make it more difficult to find buyers for its oil,” the EC said in a statement.

Moreover, the package adds an additional 43 vessels to its shadow fleet blacklist, bringing the total number of banned Russia-linked vessels to around 640.

Downward pressure:

Brent crude’s price has lost momentum as nuclear talks between the US and Iran appeared to have made some progress – easing supply concerns.

“Iran enters diplomacy with open eyes and a steady memory of the past year,” Iran’s Foreign Minister Abbas Araghchi wrote on social media platform X (formerly Twitter).

Washington and Tehran have agreed to continue the indirect talks about the latter’s nuclear ambitions, Reuters reported.

“Oil prices came under renewed pressure… after nuclear talks between the US and Iran were seen as constructive,” two analysts from ING Bank noted.

By Nachiket Tekawade and Aparupa Mazumder

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