Flat prices of bunker fuel Monday reached their highest for at least 13 months at a range of ports across the Mediterranean, supported by gains in Brent crude.

Healthy demand at Piraeus, Greece, combined with higher upstream prices.

On Monday, 380 CST fuel oil was assessed at $288/mt delivered, its highest point since August 3, 2015.

The fuel was assessed at $285/mt delivered at Istanbul, Turkey, the highest since September 4, 2015, despite mixed accounts of demand. The price at the Turkish port is usually assessed at a premium to Piraeus, but for the second time this month Istanbul was assessed at a discount to the value at the Greek port.

The discount of Istanbul to Piraeus was assessed at $3/mt Monday.

On Monday, 380 CST fuel oil reached $250/mt delivered at Novorossiisk, its highest since June 29, 2015. Sources attributed the gains to higher crude prices.

In Malta 380 CST fuel oil was assessed at $277/mt delivered, its highest since July 31, 2015.

The increases have the potential to cause ripples through the shipping industry, where books are finely balanced. However, bunker fuel buyers appeared unconcerned Tuesday. “We are not concerned, we are just aware and need to plan accordingly,” one buyer said.

Crude prices rose Monday as Russia gave its strongest signal yet that it was ready join an OPEC-led production freeze or even cut production, with President Vladimir Putin telling the World Energy Congress in Istanbul that his country was willing to play its part in accelerating the market’s rebalancing.

Saudi energy minister Khalid al-Falih said OPEC’s agreement to freeze production between 32.5 million to 33 million b/d, reached two weeks ago after a summit in Algiers, amounted to a “very gentle hand on the wheel,” as global supply and demand are already converging.

ICE Brent front-month futures closed Monday at $53.30/b, up $1.02/b from Friday.

Crude lost some ground in morning trading in Europe Tuesday as expectations of higher inventory levels weighed on sentiment and eroded some of Monday’s gains.

A run of US crude stock draws could end this week, as inventories are expected to increase under pressure from a drop in the refinery utilization rate.

The IEA reported Tuesday that global oil supply rose by 0.6 million b/d in September, with non-OPEC output up nearly 0.5 million b/d on higher Russian and Kazakh flows and with OPEC production at an all-time high.

At 1317 GMT, ICE December Brent down 0.13/b at $53.01/b.

Source: Platts