Europe & Africa Fuel Availability Outlook 17 Jul 2024
HSFO is still tight in the ARA hub
Demand is low in Las Palmas
Low LSMGO demand in Maputo
PHOTO: Cape Town Harbour, South Africa. Getty Images
Northwest Europe
Prompt supply of HSFO has been tight in Rotterdam since last week, according to a trader. The availability of the high-sulphur grade is tight because of delays in the arrival of replenishment cargoes. Lead times of 5–7 days are recommended for HSFO deliveries in Rotterdam, unchanged from last week. VLSFO and LSMGO grades are available in the port for prompt delivery dates, with recommended lead times of 3–5 days.
Availability of VLSFO and LSMGO is normal in the port, with some suppliers offering prompt delivery dates. Lead times have remained unchanged over the past few weeks, with a trader advising 3–5 days for optimal coverage from suppliers. Compared to last week, demand in the ARA hub has somewhat improved this week, a trader said.
The ARA’s independently held fuel oil stocks have averaged 9% lower coming into July than across June, according to Insights Global data.
The region has imported 182,000 b/d of fuel oil so far this month, down from 235,000 b/d of fuel oil imported in June, according to data from cargo tracker Vortexa. 17% of all imports into the ARA have come from the Caribbean region. Italy has accounted for 12% of the total imports this month, followed by France (11%) and Germany (9%).
The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have declined by 3% coming into July. The region has imported 303,000 b/d of gasoil so far this month, a decline from 356,000 b/d imported in June, according to Vortexa data.
Bunker availability is good for prompt delivery dates in Hamburg, a trader told ENGINE. Lead times of 3–5 days are advised for optimal coverage in the port, which has remained consistent in the past few months.
Mediterranean
Bunker demand in Gibraltar has shown a slight increase from last week, yet it continues to be slow, a trader said. Availability is normal at the port, with prompt delivery dates available. A trader advised lead times of 3–5 days for optimal coverage from suppliers.
In nearby Ceuta port, bunkering delays were reported at one of the terminals on Wednesday, with a bunker supplier reporting 4-5 hours of delay, said shipping agent Jose Salama & Co. The port has been witnessing bunker delays intermittently over the past two weeks. Dredging work is currently being carried out in the port, which is impacting bunker operations, the shipping agent told ENGINE. These dredging operations are aimed at increasing the vessel draft limits in certain areas of the port. Nine vessels were due to arrive for bunkers in Ceuta on Wednesday, up from three on Tuesday, the shipping agent added.
Bunker demand has been slow in the Canary Islands’ port of Las Palmas. All grades remain in normal supply in the port, with some suppliers offering grades for prompt delivery dates. Traders have advised lead times of 3–5 days for all bunker grades to ensure smooth coverage.
Demand has been low in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, a trader said.
In the Greek port of Piraeus, bunker availability across all grades is said to be normal amid low demand. A trader recommended lead times of 3–4 days for maximum coverage. The port area is expected to experience rough weather from Wednesday through Saturday, which could make bunkering more difficult.
Bunker fuel availability is normal across all grades off Malta, a trader told ENGINE. But demand remains muted in the Mediterranean port. Prompt delivery dates are available off Malta with a trader recommending lead times of 3–4 days for all grades. The weather is forecast to remain calm for the remaining days of this week to allow smooth bunkering.
Turkey’s Istanbul port has good availability across all three grades, with suppliers able to supply grades for prompt delivery dates. Lead times of 3–4 days are recommended across all grades, according to a trader. The port may experience bunkering disruptions between Wednesday and Saturday when rough weather is forecast in the area, according to a source.
Africa
LSMGO availability remains tight in South Africa’s Durban. Most suppliers can offer the grade for non-prompt delivery dates. Lead times of up to two weeks are recommended for the grade, which has remained unchanged in the past several weeks.
VLSFO is available for comparatively shorter lead times of 7–10 days in Durban and Richards Bay. Rough weather may impact bunkering in Durban on Friday, when strong wind gusts of up to 28 knots are forecast, according to a source.
In Mozambique’s Nacala, HSFO supply remains extremely tight, and demand for the grade has been low, a source told ENGINE. VLSFO and LSMGO availability is good amid steady demand.
Maputo currently has tight availability of both VLSFO and LSMGO. While demand is steady for VLSFO in Maputo, LSMGO is facing a slump in demand, a source said.
By Manjula Nair
Please get in touch with comments or additional info to news@engine.online
![Engine](/wp-content/themes/pegasus/components/author/assets/thumbnail.png)
![Photo of smiling bunker trader in office in white collared shirt](https://integr8fuels.com/wp-content/uploads/2023/04/Our-experts.png)
Contact our Experts
With 50+ traders in 12 offices around the world, our team is available 24/7 to support you in your energy procurement needs.