LSMGO availability improves in ARA

Bunker fuel availability is tight in Malta, Piraeus and Istanbul

LSMGO tight in Durban and Richards Bay

PHOTO: The Port of Piraeus in Athens, Greece. Getty Images

Northwest Europe

In the ARA hub, recommended lead times for HSFO are 5-7 days, and 4-6 days for VLSFO, a trader said.

LSMGO availability has improved in the ARA hub, with prompt delivery dates available, according to the trader. Recommended lead times are 3-4 days for the grade, down from 4-5 days last week. 

Rotterdam's Hi5 spread has widened from $73/mt last week to $104/mt on Wednesday.

The ARA’s fuel stocks have gained 6% coming into this month, according to Insights Global Data. The region has imported 229,000 b/d of fuel oil so far this month, which is slightly lower than 243,000 b/d imported in October, according to cargo tracker Vortexa.

Fuel oil cargoes have mostly arrived from the UK, accounting for 32% of the ARA's total fuel oil imports in November. Turkey took the second position at 30%, and Germany in third position at 12%.

The ARA’s independent gasoil inventories – which include diesel and heating oil – declined by 5% on the month, according to Insights Global data. 

VLSFO and LSMGO availability remains normal for delivery off Skaw, a source says. Recommended lead times for both grades are around 7-10 days. HSFO availability remains a bit tight in Skaw.

Mediterranean

HSFO availability is a bit tight in Gibraltar. Lead times of 5-7 days are recommended to ensure full coverage from suppliers.

Gibraltar's Hi5 spread widened from $91/mt last week, peaking at $103/mt on Tuesday, before narrowing again to $98/mt on Wednesday. The port's Hi5 spread has widened significantly from narrow levels of $20/mt seen last month.

One supplier was experiencing delays of 24-32 hours in Gibraltar and Algeciras on Wednesday, according to port agent MH Bland.

Bunkering was progressing normally in Las Palmas' outer anchorage on Wednesday, after being mostly suspended last week due to rough weather conditions. Both inner and outer anchorages were open for bunkering on Wednesday, MH Bland said.

All grades remain in tight availability for prompt dates in other Mediterranean ports of Malta, Piraeus and Istanbul, a trader said. Most suppliers in Piraeus are offering fuel grades for non-prompt delivery dates.

Wind gusts of up to 24 knots are forecast to hit Malta in periods between Wednesday and Thursday, which could complicate deliveries there, the trader added.

Africa

LSMGO is very tight at the South African ports of Richards Bay and Durban. Lead times of more than 10 days are recommended in both ports, a trader said. VLSFO availability is relatively better and lead times of up to seven days are still recommended for the grade.

Offshore bunkering has remained suspended at the Algoa Bay anchorage for over a month now. The deliveries came to a standstill after the South African Revenue Service (SARS) detained bunker barges over import duty disputes in September.

Discussions are taking place between bunker suppliers and South African authorities to resolve the offshore bunkering crisis, a port agent told ENGINE. The outcome of these discussions is expected to be announced in December.

Meanwhile, bunkering is progressing normally in the adjacent Port Elizabeth, where one supplier is delivering stems, the port agent added.

By Manjula Nair

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