Bunker prices have risen across the board since Friday, and prompt fuel availability is tight at the Gibraltar Strait ports.
IMAGE: Aerial view of the Bay of Gibraltar. Getty Images
Changes on the day from Friday to 09.00 GMT today:
- VLSFO prices up in Rotterdam ($67/mt), Durban ($65/mt) and Gibraltar ($31/mt)
- LSMGO prices up in Gibraltar ($115/mt), Durban ($73/mt) and Rotterdam ($43/mt)
- HSFO prices up in Durban ($41/mt), Gibraltar ($24/mt) and Rotterdam ($3/mt)
Gibraltar’s LSMGO price has surged more sharply than Rotterdam’s LSMGO benchmark, widening Gibraltar’s LSMGO premium over Rotterdam’s by $72/mt over the weekend, to $189/mt.
Meanwhile, Gibraltar’s VLSFO price has increased slightly lesser than Rotterdam’s. As a result, Gibraltar’s VLSFO premium has narrowed by $36/mt over the weekend, to $36/mt.
Gibraltar’s HSFO premium over Rotterdam has widened by $21/mt over the weekend.
Fuel availability is tight for prompt supplies at ports in the Gibraltar Strait, and buyers are recommended lead times of 7-10 days to get good coverage from suppliers, a trader told ENGINE.
Around nine vessels are currently queued up for bunkers in Gibraltar, according to port agent MH Bland. Some suppliers are running more than a day behind on deliveries, while others may be 4-12 hours late, the port agent noted.
Suppliers in Algeciras are delayed on deliveries by between 2-12 hours, MH Bland added. Meanwhile, barge deliveries in the Port of Ceuta may be delayed by around eight hours, the port agent said.
Rough winds of more than 25 knots and swells higher than 2 metres are forecast between 9-10 October, which may disrupt supplies at the Port of Gibraltar.
Brent:
The front-month ICE Brent contract has gained by $3.07/bbl on the day from Friday, to trade at $102.55/bbl at 09.00 GMT.
Upward pressure:
Brent crude’s price has opened the week above the $100/bbl mark, as more crude oil tankers came under missile and drone attacks within the Strait of Hormuz over the weekend.
At least four separate commercial vessels were struck by unknown projectiles since Friday, while attempting to transit the region, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.
One oil tanker was stuck within the Strait of Hormuz yesterday, causing a fire in the engine room. Another vessel, about 4 nautical miles east of Oman, sustained damages on the port side on Saturday, the UKMTO reported.
“There’s still little sign of an end to tensions,” two analysts from ING Bank said. “We have seen an increase in attacks on commercial vessels in the Persian Gulf recently,” the analysts added.
Downward pressure:
Brent’s price has felt some downward pressure following news of the release of another tranche of emergency oil stocks, amidst supply concerns following disruption to Saudi oil deliveries.
The Group of Seven (G7) countries, and their partners, have agreed to collectively release up to 100 million bbls of emergency crude oil stocks over the next four months. The release will be coordinated by the International Energy Agency (IEA).
“Oil prices are under pressure amid plans for additional coordinated releases from strategic reserves,” ING Bank’s analysts said.
The announcement came shortly after the Washington issued another Request for Proposal (RFP) for an exchange of up to 40 million bbls of crude oil from its Strategic Petroleum Reserves (SPR) last week.
The latest G7 action “reflects the growing tightness” in the global oil market, ING Bank’s analysts added.
By Nachiket Tekawade and Aparupa Mazumder
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Source: www.engine.online
