Fuel supply terminals in the Canary Islands watch carefully
Fuel bunkering terminals in the Canary archipelago are observing with caution the sharp pricing and availability reshuffle affecting the European and African maritime corridor. The strategic position of the Las Palmas and Santa Cruz de Tenerife ports is directly impacted by volatility in major bunkering hubs across the continent and on Africa’s Atlantic-facing coast, in a global context where Brent crude is trading near $79.50 per barrel, driven by instability in Middle East routes.
Adjusted margins and competitive pressure on the Atlantic axis
Canary port facilities, which serve as a benchmark for the supply of MARPOL and marine fuels in the Mid-Atlantic, are entering a phase of tariff adjustment prompted by movements in competing markets. In Gibraltar, VLSFO (very low-sulphur fuel oil) has risen by $7 per ton, pushing heavy fuel oil higher as well, up by $2. By contrast, LSMGO (low-sulphur marine gasoil) in the Rock has fallen by $14 per ton. This pattern of tightly aligned prices in the Strait forces operators working on the islands to calibrate their bunkering offers to maintain an attractive competitive gap versus container and bulk carriers diverting routes around the African continent.
Gibraltar holds steady as Africa shows uneven port moves
The situation in the Gibraltar enclave reflects relative firmness in fuel oils, aligned with demand from ships transiting between continents. Meanwhile, the African market shows a heterogeneous pattern, centered on Durban. The South African port recorded a $9 per ton increase in VLSFO, while its LSMGO and heavy fuel oil quotes fell by $24 and $9 per ton, respectively. This mismatch between supply points in southern Africa and the Gibraltar Strait area is redirecting fleets toward Atlantic nodes such as the Canaries, which can offer operational stability on routes connecting Europe with South America and the Indian Ocean.
Collapse in the Piraeus shifts Mediterranean differentials
The most drastic development of the day in European markets was felt in the eastern Mediterranean. Piraeus recorded a historic drop of $145 per ton in LSMGO in just 24 hours, driven by a mid-volume contract of between 150 and 500 tons priced at an abnormally low $1,209 per ton. The sharp correction has meant Athens marine gasoil moves from trading with a $101 premium versus Malta to operating at a $31 discount. Versus Gibraltar, the Piraeus premium has fallen dramatically by $131 in a single day, down to just $16. Despite this one-off cut, LSMGO in Greece has accumulated a 17% increase since July, below the 21% to 23% rise recorded in Malta and Gibraltar.
Middle East tension and operational bottlenecks in Greece
Volatility in Piraeus prices is compounded by a structural issue in immediate availability. Operators at the Greek port are requesting delivery windows of up to seven days for HSFO, VLSFO and LSMGO, and five days for ULSFO, tightening ships’ logistical chains with adjusted port calls. This operational rigidity in the Mediterranean coincides with uncertainty in the global oil market. The Brent barrel falls by 0.80% to $79.50, caught between upward pressure from Houthi attacks in the Red Sea—which have led to the sinking of the tanker MSV Faize Noore Oliya—and downward pressure tied to the possible reopening of the Strait of Hormuz following diplomatic talks between Iran and Oman.
The VLSFO market piece titled ‘VLSFO: Bunkering pressures in the Canaries after Gibraltar price reset’ was first published on canarymaritime.com.
