Global Market Update 24 Dec

Bunker prices across major global ports have largely moved higher, and bunker fuel availability remains tight in the Gibraltar Strait.

IMAGE: Aerial view of the Bay of Gibraltar. Getty Images

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Rotterdam ($7/mt), Houston ($6/mt), Fujairah, Gibraltar ($4/mt) and Singapore ($3/mt)
• LSMGO prices up in Houston ($10/mt), Rotterdam ($9/mt), Fujairah ($5/mt), unchanged in Singapore, and down in Gibraltar ($6/mt)
• HSFO prices up in Rotterdam ($22/mt), Singapore ($7/mt), Houston, Fujairah ($2/mt), and down in Gibraltar ($6/mt)
• B30-VLSFO at a $271/mt premium over VLSFO in Singapore
• B30-VLSFO at a $287/mt premium over VLSFO in Fujairah
• B30-VLSFO at a $381/mt premium over VLSFO in Gibraltar

Bunker fuel prices across major global ports have largely tracked Brent’s upward movement, while Gibraltar’s HSFO and LSMGO prices have declined.

Gibraltar's VLSFO price has edged up, while its HSFO price has fallen. These price movements have widened the port's HI5 spread by $10/mt.

Rotterdam’s LSMGO price has moved considerably higher, while Gibraltar's benchmark has seen a slight decline. The opposing movements have narrowed Gibraltar’s price premium by around $15/mt.

Securing prompt deliveries can be difficult in the Gibraltar Strait ports, and buyers are advised to enquire about stems a week in advance to avoid higher premiums, a trader told ENGINE. Some suppliers are running 24 hours behind schedule in Gibraltar and in the neighbouring Algeciras port, according to port agent MH Bland.

Bunker fuel prices have gained in Houston over the past day. Houston's VLSFO price has increased more than its HSFO price, widening the port’s Hi5 spread to $84/mt today. The port reopened only inbound traffic on Tuesday and is expected to allow full vessel movements shortly, a source said.

Bunkering operations at the Port of Houston have been delayed due to dense fog in the region, which has restricted vessel movements and led to frequent suspensions of port operations.

Singapore’s LSMGO price has held steady after a 150-500 mt VSLFO stem was fixed at $606/mt for prompt delivery earlier today. Meanwhile, another 500-1,500 mt HSFO stem fixed at $361/mt for prompt delivery in Singapore has pushed the port's HSFO benchmark slightly up today.

Bunker fuel supply continues to remain tight in Singapore, a source said. Only a limited number of suppliers can offer small HSFO parcels, with a premium expected for quantities of 500 mt and below.

Brent

The front-month ICE Brent contract has gained by $0.50/bbl on the day, to trade at $62.56/bbl, at 17.00 SGT (09.00 GMT) today.

Upward pressure:

Concerns over potential supply disruptions from Venezuela and Russia have lent support to Brent crude’s price.

Russia's and Ukraine's recurring attacks on each other's energy infrastructure have lifted Brent’s price up today, according to market analysts.

Meanwhile, more than a dozen loaded vessels in Venezuela await new directions from their owners after the US seized the oil tanker Skipper earlier this month and targeted two additional vessels over the weekend, Reuters reported.

US President Donald Trump last week barred all sanctioned vessels from entering or leaving Venezuela, escalating pressure on Venezuelan President Nicolás Maduro to step down.

Downward pressure:

Brent crude’s price has come under mild downward pressure after the American Petroleum Institute (API) reported a rise in US crude inventories.

According to API, US crude stockpiles climbed by 2.4 million bbls in the week ending 19 December.

Inventory builds are generally viewed as a sign of softer demand and tend to weigh on oil prices.

By Aparupa Mazumder, Gautamee Hazarika and Nachiket Tekawade

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