It was last lower on December 11 at $3/mt, Platts data showed.
From Monday`s level of around $589.50/b delivered, reported levels on Tuesday morning were around $592/mt, up slightly on firmer Brent crude futures.
Suppliers said the drop in premiums relative to the bunker hub of Rotterdam was mainly due to weak demand and increased competition from new entrants to the Algeciras market.
BP entered the market in June, then from July onward Bominflot, Peninsula and Aegean joined the competition, traders said, bringing Algeciras suppliers from two to six.
Across the Strait of Gibraltar in Ceuta, another supplier said there were "very low volumes" Tuesday.
In Rotterdam, delivered premiums over FOB barges of 3.5% sulfur 380 CST bunker fuel have been volatile, but mostly within a range of $1-6/mt this year.