Europe & Africa Market Update 9 Sep

European and African bunker prices have moved in mixed directions, while bunker fuel availability is very tight in Port Louis.

IMAGE: A bulk carrier in Port Louis. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($7/mt) and Rotterdam ($3/mt), and down in Durban ($1/mt)
• LSMGO prices up in Rotterdam ($9/mt) and Gibraltar ($2/mt), and down in Durban ($12/mt)
• HSFO prices up in Gibraltar ($6/mt), unchanged in Rotterdam, and down in Durban ($2/mt)
• B30-VLSFO prices up in Gibraltar ($21/mt) and Rotterdam ($3/mt)

Bunker fuel prices have largely ticked up in Rotterdam and Gibraltar, while they have dropped in Durban.

Durban’s LSMGO price has dropped $12/mt over the past session.

Meanwhile, Port Louis’ LSMGO price has surged $57/mt in the same period. This significant price increase has narrowed Port Louis’ price discount to Durban by $69/mt, to $99/mt.

Port Louis’ VLSFO price has gained $11/mt in the last day, while the port's HSFO price has dropped $14/mt. Consequently, the port's Hi5 spread has widened by $25/mt over the past day.

Fuel availability is very tight in Port Louis for all grades, with buyers recommended lead times of around 10-14 days to secure supplies, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $1.12/bbl on the day, to trade at $100.36/bbl at 09.00 GMT.

 Upward pressure:

Brent crude’s price has continued to climb, surpassing the $100/bbl mark, as tensions in the Persian Gulf escalate.

The US Central Command (CENTCOM) carried out additional strikes on Iran-linked oil tankers yesterday, hitting five vessels in response to Tehran targeting a US Navy warship.

“The oil market continues to move higher this morning as the Middle East tension escalates,” two analysts from ING Bank noted.

One vessel, M/T Riesco, sank in the Gulf of Oman, CENTCOM noted.

“Recent developments only reinforce the view that we’re still some way from a restart in talks,” ING Bank’s analysts added.

Downward pressure:

While Brent’s price is under limited downward pressures today, market participants are eyeing US crude inventory data that is scheduled for release later this week.

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

The crude stocks report has been delayed this week due to the US Labour Day holiday.

By Nachiket Tekawade and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online