HSFO remains tight in the ARA

Supply has improved in Barcelona

LSMGO supply is dry in Durban

PHOTO: Commercial harbour at the port of Las Palmas. Getty Images

Northwestern Europe

HSFO and VLSFO availability remains tight in Rotterdam and across the wider ARA hub, a trader told ENGINE. Lead times remain unchanged for both grades with 7-10 days recommended for HSFO and 5-7 days for VLSFO. Despite the tightness, VLSFO supply in the ARA hub has improved slightly compared to the last week, a source said.  

LSMGO availability is relatively better in the ARA hub and most suppliers can offer the grade for prompt delivery dates. Lead times of around 3-5 days are advised for the ARA, according to the trader.  

The ARA’s independently held fuel oil stocks have remained unchanged so far this month compared to October, according to Insights Global data.

The region has imported 184,000 b/d of fuel oil so far this month, down from 262,000 b/d imported in October, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 31/69 ratio in November so far, compared to a 45/55 ratio in October.

The UK (37% of the ARA's total imports) has emerged as the region’s biggest oil import source so far this month. Saudi Arabia (25%) has come in second place, while Poland (12%) has ranked third. Other import sources include France (11%) and Denmark (6%). 

Despite higher imports, the ARA hub’s independent gasoil inventories - which include diesel and heating oil - have come down by 4% so far this month. The region has imported 672,000 b/d of gasoil so far this month, registering a sharp uptick from 411,000 b/d of gasoil imported in October, according to Vortexa data.

In Germany’s Hamburg port, bunker fuel availability is good with suppliers offering prompt supply for all grades. Lead times of 3-5 days are recommended for all three grades in Hamburg, a trader told ENGINE. 

Mediterranean

LSMGO availability in Gibraltar port has tightened, with lead times increasing to 5-7 days, up from 3-5 days last week. A supplier is not offering LSMGO at the moment due to an unknown blending issue at its refinery, a trader told ENGINE.

HSFO supply is tight in Gibraltar, with some suppliers unable to accommodate stems for very prompt delivery dates, a trader said. A supplier is only able to supply the grade for delivery dates after 28 November. In contrast, VLSFO supply is robust in Gibraltar, with recommended lead times of 3-5 days.

Gibraltar has experienced heavy congestion this week due to recent weather-related disruptions, which have led to delays in bunkering at the port. 13 vessels were waiting to receive bunkers on Wednesday, down from 15 on Tuesday, according to a source.

In the Canary Islands’ port of Las Palmas, HSFO remains in short supply for a few suppliers. A trader recommends lead times of 7-10 days for HSFO for optimal coverage from suppliers. The earliest date for HSFO with one supplier is 3 December, a trader said.

VLSFO and LSMGO are well-stocked in Las Palmas, with recommended lead times of 3-5 days for both grades.

Supply tightness has eased slightly for HSFO and VLSFO in Spain’s Barcelona. Lead times have reduced slightly from 7-10 days in the past week to 5-7 days now. LSMGO supply remains good and lead times remain unchanged at 5-7 days. Bunker operations in Barcelona may face disruptions until Friday due to strong winds. Gusts of 21-26 knots are forecast for Wednesday, increasing to 24-32 knots on Thursday and Friday.

Other Mediterranean bunker hubs like Piraeus, Malta Offshore and Istanbul continue to witness muted demand, a trader said.

Greece’s Piraeus port has normal availability of all three bunker grades, a trader told ENGINE. Lead times remain consistent with 3-5 days recommended for all three grades. Bad weather is forecast from Thursday onwards and could disrupt bunkering until Saturday, a source said.

Off Malta, bunker availability remains normal as it was last week. Most suppliers can deliver VLSFO and LSMGO within 3-5 days. HSFO supply is subject to enquiry as only one supplier can offer the grade off Malta. Rough weather may hamper bunkering between Wednesday and Saturday, according to a source.  

Istanbul port in Turkey has good availability across all three grades, a trader told ENGINE. Lead times of 3-5 days are advised for all bunker fuel grades in the port.

Africa

In South Africa’s Durban, one source reported that LSMGO supplies are running dry, while another mentioned that only one supplier currently has LSMGO. Bunker operations may face disruptions on Thursday due to forecasted wind gusts of 22 knots, with further adverse weather expected on Saturday.

VLSFO supply is also tight in Durban as well as Richards Bay, with lead times of 7-10 days recommended. 

Securing prompt supply is not a challenge in Mauritius’ Port Louis. All three grades are well stocked in the port as demand has been strong, particularly for VLSFO and LSMGO, according to a trader. Port Louis may witness weather-induced bunkering disruptions on Wednesday and Thursday, a source said. 

By Manjula Nair

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