LSMGO tightens a bit in the ARA

Several Mediterranean ports grapple with low demand

LSMGO supply improves in Durban

PHOTO: Port Elizabeth, near Algoa Bay. Transnet

Northwest Europe

LSMGO availability in the ARA has tightened slightly as some bunker suppliers are experiencing supply delays, a trader said. Lead times for the grade have gone up from last week's 2-4 days to 3-5 days now.

Lead times for HSFO and VLSFO in Rotterdam and in the wider ARA hub remain unchanged from last week. HSFO requires lead times of 4-6 days, while VLSFO requires 4-5 days.

The ARA’s independently held fuel oil stocks have averaged 7% lower so far this month than across March, according to Insights Global data.

The region has imported 385,000 b/d of fuel oil so far this month, up from 254,000 b/d in March, according to data from cargo tracker Vortexa.   

Mexico has emerged as the ARA’s biggest fuel oil import source this month, accounting for 25% of the region’s total imports. Lithuania has ranked second, accounting for 16% of the total imports, followed by the UK (13%), the US (10%) and France (8%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 3% this month. Gasoil stocks have risen to their highest levels since June last year. The region has imported 288,000 b/d of gasoil so far this month, down from 373,000 b/d imported in March.

The German port of Hamburg has good availability across all bunker grades, with suppliers offering stems for prompt delivery dates. Lead times of 3-5 days are recommended for all grades, a trader says.

Off Skaw, availability is very tight for all grades, with supply mostly available for non-prompt delivery dates, a trader said. Lead times of up to two weeks are generally recommended for all grades. Adverse weather is forecast to hit the region this week, which could complicate deliveries not only in the current week but also extend into next week

Mediterranean

Availability is normal in Gibraltar, with lead times of 4-6 days advised for all grades, according to a trader. Wind gusts of up to 26–30 knots are forecast to hit Gibraltar and Ceuta on Friday and may trigger bunker suspensions.

The weather is forecast to remain rough over the weekend as well, which could complicate deliveries in the Gibraltar Strait.

Bunker fuel availability is also good in the Canary Islands’ port of Las Palmas, according to a trader.

Other Mediterranean ports like Piraeus, Malta Offshore and Istanbul continue to grapple with low demand, a trader said. 

The Greek port of Piraeus has good availability across all grades. Suppliers are able to offer grades for prompt deliveries in the port, according to a trader. Piraeus has been witnessing rough weather since Tuesday and is expected to prevail till Friday. This may disrupt bunker operations at the port.  

Bunker fuel availability is good off Malta, with prompt supply offered for all grades. Bunkering may be hampered off Malta with adverse weather conditions forecast in the area until Friday. 

All grades are available for prompt delivery dates in the Turkish port of Istanbul, a trader said. The weather is also bad in the region, which could impact bunkering in the area until Friday.

Africa

LSMGO supply has improved in the South African port of Durban. Suppliers are now offering the grade for non-prompt delivery dates, a trader said. Previously, supply was scarce, with most suppliers unable to offer the low-sulphur grade for prompt dates as well as for dates further out.

VLSFO supply is normal in Durban and Richards Bay. Lead times of 7–10 days are recommended for the grade, similar to previous weeks. Durban was hit with bad weather on Wednesday, and it may impact bunkering.

Seven months have passed since offshore bunkering was suspended in South Africa's Algoa Bay last September. The suspension was enforced after the South African Revenue Service (SARS) detained bunker barges over import duty disputes. One supplier is offering in-port deliveries in Port Elizabeth, where bunkering is only available by truck.

It remains unclear when offshore bunker supply will resume in Algoa Bay, as negotiations are still ongoing between suppliers and authorities.

By Manjula Nair  

Please get in touch with comments or additional info to news@engine.online