Prompt HSFO supply tight in the ARA

Prompt bunker supply tight in Las Palmas

Good VLSFO and LSMGO in Maputo

PHOTO: The Port of Las Palmas in Gran Canaria. Nightview with reflection in the water. Getty Images

Northwest Europe

Securing prompt supply of HSFO can be slightly difficult in Rotterdam and in the wider ARA hub, requiring lead times of 5-7 days. Availability of VLSFO and LSMGO grades remains normal, with recommended lead times of 3-5 days, consistent with last week.

Energy consultancy IIR reported earlier this week that BP is expected to soon restart a 200,000 b/d crude distillation unit at its 400,000 b/d capacity Rotterdam refinery, following an unplanned outage on 10 December. This could help improve bunker fuel supply in the region.

The ARA’s independently held fuel oil stocks have gone up by 5% so far this month compared to November, according to Insights Global data.

The region has imported 167,000 b/d of fuel oil this month, significantly down from 301,000 b/d imported in November, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 73/27 ratio, compared to a 51/49 ratio in November.

The ARA hub’s independent gasoil inventories - which include diesel and heating oil - have registered a 5% dip this month. The region has imported 287,000 b/d of gasoil and diesel, down from 359,000 b/d imported in November, according to Vortexa data.

In Germany’s Hamburg port, bunker supply is good across all three grades, with recommended lead times of 3-5 days, a trader said. Supply of VLSFO and LSMGO is normal in Bremerhaven, requiring lead times of up to five days, the trader said.

German bunker supplier Mabanaft supplied 1,000 mt of B30-VLSFO to a container ship, owned by shipping company Hapag-Lloyd, in Hamburg on 12 December. The bunker operation was a first test delivery under the supply agreement between the two companies. Volumes could increase further next year, Mabanaft said.

Mediterranean

Supply of all bunker fuel grades remains normal in Gibraltar, with recommended lead times of 3-5 days.

Gibraltar is forecast to experience calmer weather conditions for the rest of this week, after facing strong wind gusts on Monday and Tuesday. The backlog of vessels waiting to bunker in Gibraltar was reduced to 15 vessels on Wednesday, down from 24 vessels on Tuesday, according to a source.

In the Canary Islands’ port of Las Palmas, prompt supply remains tight for all three grades. Lead times of up to seven days are advised by traders. Strong wind gusts are forecast to hit Las Palmas on Saturday, which could complicate bunker deliveries.

Prompt bunker supply is currently tight in the Spanish port of Barcelona, a trader said. Lead times of 5-7 days are advised for HSFO, VLSFO and LSMGO.

Bunker demand is currently low in the Greek port of Piraeus, while supply of HSFO, VLSFO and LSMGO grades is good. Bunker supply is expected to improve further in Greek ports this week, following the end of a three-day refinery strike. The Hellenic Petroleum Labour Union had announced the strike from 14-16 December, according to GAC Hot Port News.

Bunker supply is good across all grades in other Mediterranean bunkering locations such as off Malta and Istanbul. Lead times of 7-10 days are advised for all grades for full coverage from suppliers, a trader said.

Africa

In South Africa’s Durban and Richards Bay, VLSFO availability remains tight for prompt delivery dates, according to a trader. Lead times of 7-10 days are advised for full coverage from suppliers.

Securing prompt supply of LSMGO is still difficult in Durban, requiring lead times of 7-10 days.

In Mauritius' Port Louis, availability of all three grades is said to be normal, requiring lead times of around seven days. However, bad weather could impact bunkering in Port Louis on Saturday and Sunday.

Bunkering is progressing smoothly in Mozambique’s Nacala and Maputo ports. The recent bouts of civil unrest in the country have been limited to some urban areas and have not impacted bunkering operations, a source said.

Demand is stable in Nacala, with good availability of all three grades. Similarly, Maputo is also experiencing stable demand and has good supply of VLSFO and LSMGO.

By Shilpa Sharma

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