Availability is tight off Skaw

Demand improves in Piraeus and Malta

VLSFO supply available for non-prompt dates in Durban

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

Northwest Europe

Availability across all grades is normal in the ARA hub. Securing prompt deliveries for HSFO is difficult in the ARA, with traders advising lead times of 4-6 days for the grade. Lead times of 4-5 days are recommended for VLSFO, while LSMGO has shorter lead times of 3-5 days in the ARA.

The ARA’s independently held fuel oil stocks have averaged 5% lower so far this month than across March, according to Insights Global data.

The region has imported 237,000 b/d of fuel oil so far this month, down from 254,000 b/d in March, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 32/68 ratio so far this month, compared to 45/55 ratio last month.

Mexico has emerged as the ARA's biggest fuel oil import source so far this month, accounting for 23% of the region’s total imports. Both Lithuania and the UK are holding the second position, with each accounting for 15% of the total ARA's imports. Other import sources have been the US (9%) and France (7%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 3% so far this month. Gasoil stocks have risen to their highest levels since June last year. 

Availability in the German port of Hamburg is normal, with prompt delivery dates available across all grades. Lead times of 3-5 days are recommended for all fuel grades.

Off Skaw, all three grades remain in tight supply for the second consecutive week . The tightness has shown no signs of abatement. Extended lead times of 10-14 days are recommended for all grades. Bad weather is forecast off Skaw on Sunday and next Monday, which could complicate bunker deliveries. 

Mediterranean

Bunker fuel availability is said to be normal in Gibraltar, but securing grades for prompt supply may still be a challenge. Most traders are recommending lead times of 4-6 days for all three grades. Wind gusts between 12-23 knots are forecast to hit Gibraltar from Thursday onwards, which could delay bunker operations until Saturday. Winds at the higher end of that range can pose problems to bunker deliveries by barge.

Slight congestion was reported in Gibraltar on Wednesday, where nine vessels were waiting to receive bunkers, unchanged from Tuesday, according to a source.

Other Mediterranean ports, such as Piraeus, Malta Offshore and Istanbul, have seen improvements in demand this week, following a patch of low demand in recent weeks, according to a trader.

Availability across all grades is good in the Greek port of Piraeus, a trader said. But rough weather is forecast in the port till Friday, which could affect bunkering in the area. 

Prompt availability is good off Malta despite bad weather challenges, a trader said. Wind gusts of up to 26 knots are forecast for Thursday and are expected to intensify to 35 knots on Saturday.

The Turkish port of Istanbul has normal availability of all bunker fuel grades, a trader said. Prompt deliveries are available across all grades, but adverse weather conditions until Saturday may impact delivery schedules.

Africa 

Availability of VLSFO and LSMGO is good for non-prompt delivery in Durban, with a trader recommending lead times of 7-10 days for both fuel grades. VLSFO availability is also good in Richards Bay, where lead times are similar to those in Durban.

Bad weather conditions are forecast in Durban until Sunday, which could hamper deliveries.

The South African Revenue Service (SARS) has recently requested a second round of public feedback on the proposed amendments to bunkering rules in Algoa Bay. SARS, however, has not provided any clarity on how soon bunkering could resume.

Offshore bunkering has been suspended in Algoa Bay since last September, when SARS detained bunker barges due to import duty disputes. Since then, bunker supply has been limited to in-port deliveries by a supplier in Port Elizabeth, where supply is only available via trucks.

By Manjula Nair

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