VLSFO and LSMGO supply is tight in the ARA

HSFO is tight in Piraeus

Bunkering remains suspended off Algoa Bay

PHOTO: A cargo terminal in Piraeus harbour in Greece. Getty Images

Northwest Europe

Prompt LSMGO and VLSFO availability have tightened in the ARA hub because of bunker barge loading delays at some oil terminals. Some barges are experiencing delays in loading products from oil terminals, a trader said. This has resulted in product shortages for some suppliers. Recommended lead times for both grades have increased from last week's 3–5 days to 4–6 days now.

Prompt HSFO supply has been tight for the third consecutive week in the ARA hub. Some sources said that shortages in HSFO supply have also resulted from delays in the arrival of replenishment cargoes. Lead times of 5–7 days are recommended for the high-sulphur grade.

The ARA’s independently held fuel oil stocks have averaged 8% lower so far in July than across June, according to Insights Global data.

The region has imported 308,000 b/d of fuel oil so far this month, up from 235,000 b/d of fuel oil imported in June, according to data from cargo tracker Vortexa. The UK has been the ARA's biggest fuel oil source this month, accounting for 18% of the region's total imports, followed by Mexico (17%), Lithuania (11%), France (10%) and the US (7%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have decreased by 4% so far this month. The region has imported 260,000 b/d of gasoil so far this month, down from 356,000 b/d imported in June, according to Vortexa data.

Availability is normal in Germany’s Hamburg, with prompt delivery dates available, a trader said. Lead times of 3–5 days are generally advised for maximum coverage from suppliers. 

Mediterranean

Bunker availability is normal in Gibraltar, with lead times of 3–5 days advised by traders.

On Wednesday, the Gibraltar Port Authority cautioned that thick fog could reduce visibility in the port area. Reduced visibility could impact bunkering in the port as barge deliveries become more difficult. Two vessels were waiting for bunkers in Gibraltar on Wednesday, down from three on Tuesday, a source said.

Bunkering was proceeding smoothly in nearby Ceuta on Wednesday, shipping agent Jose Salama & Co. told ENGINE. Bunker fuel availability is normal in the port. Ten vessels were due to arrive for bunkers in Ceuta on Wednesday, up from six on Tuesday, the shipping agent said. Dredging work is still being carried out in the port area, but it has not caused any bunkering delays so far this week. 

Availability is normal across all three bunker fuel grades in the Canary Islands’ port of Las Palmas, a trader told ENGINE. Lead times remain unchanged from last week’s 3–5 days for optimal coverage. Calm weather is forecast in Las Palmas for the rest of the week, making it conducive to bunkering. 

Demand continues to be low in other bunker ports in the Mediterranean like Piraeus, Malta Offshore and Istanbul, a trader said. 

The Greek port of Piraeus has ample availability of VLSFO and LSMGO with lead times of 3–4 days advised. But HSFO is running tight and most suppliers can offer the grade for non-prompt delivery dates. One of the Greek refineries is almost out of HSFO stock, which has led to a supply crunch, a trader said. The grade is expected to remain tight for the remaining days of this month.

Bunkering disruptions are likely to occur between Wednesday and Saturday in Piraeus amid adverse weather conditions forecast in the area.  

Bunker availability is normal in Turkey’s Istanbul port. A trader recommends lead times of 3–4 days in the port area.

Off Malta, availability is normal across all three bunker grades, according to a source. Lead times have remained consistent over the past few weeks at 3–4 days. Rough weather is forecast off Malta on Wednesday and Thursday, which may hamper bunkering in the area.

Africa

Algoa Bay’s offshore bunkering suspension remains in force well into its tenth month in July. The suspension began last September after the South African Revenue Service (SARS) detained bunker barges due to import duty disputes. In June, some of the bunker suppliers removed their barges from Algoa Bay amid the suspension.

Supply is currently limited to in-port deliveries by one supplier in Port Elizabeth, which is adjacent to Algoa Bay.

By Manjula Nair

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