Prompt HSFO tight in the ARA

Gibraltar suppliers working through backlogs

LSMGO still try in Durban

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

Northwest Europe 

The ARA’s HSFO supplies have remained unchanged since last week, with slight tightness for very prompt deliveries. Suppliers are able to provide the grade with a lead time of 5-7 days, a trader said. 

VLSFO and LSMGO grades are well-stocked in the ARA and seeing an uptick in demand, according to a source. A trader advises lead times of around 3-5 days for both grades.

The ARA’s independently held fuel oil stocks have increased by 9% so far this month compared to December, according to Insights Global data.

The region has imported 148,000 b/d of fuel oil this month, down from 161,000 b/d imported in December, according to data from cargo tracker Vortexa. 

The UK (28% of the total) has emerged as the region’s biggest fuel oil import source in January. Poland (24%), Lithuania (19%), Algeria (14%), Finland (9%) and Germany (6%) were other import sources this month.

The ARA hub’s independent gasoil inventories - which include diesel and heating oil - are up by 15% on the month. The region has imported 160,000 b/d of gasoil and diesel, down from 238,000 b/d imported in December, according to Vortexa data.

The German port of Hamburg has ample bunker supply, a trader said. Prompt delivery dates are available for the three main fuel grades with recommended lead times of 3-5 days. 

Mediterranean

Availability continues to be good in Gibraltar for all three grades, a trader said. Lead times of 3-5 days have been advised for optimal coverage. Strong wind gusts of up to 19 knots may intermittently hamper bunkering in Gibraltar until Friday, according to a source.

Ports in the Gibraltar Strait have been tackling rough weather conditions since last week, which has led to backlogs and delays for some suppliers.

Supply continues to be tight in the Canary Islands’ Port of Las Palmas. Securing very prompt delivery dates may be a challenge as a trader advises lead times of 5-7 days for VLSFO, LSMGO and HSFO.

In the Spanish port of Barcelona, suppliers can provide the three grades within 5-7 days, a trader said. Suppliers in the port still have some tightness in bunker availability. 

Bunker availability is normal in the Portuguese ports of Lisbon and Sines, according to a source. 

Meanwhile, bunker availability is good in the Greek port of Piraeus, a trader said. Calm weather is forecast in Piraeus over the next few days, making it conducive to bunkering.  

Bunkering is proceeding smoothly and availability is normal in the Turkish port of Istanbul, a trader told ENGINE.

Bunker availability is good off Malta and lead times of 3-4 days are advised for full coverage. Rough weather has impacted bunkering recently and is forecast to continue until Saturday, a trader said.

Africa

South Africa’s Durban and Richards Bay are still reeling under VLSFO supply tightness, a trader told ENGINE. The grade is very tight, with suppliers needing lead times of 7-10 days in both ports. 

LSMGO continues to be dry in Durban, according to a trader. The grade ran dry in the port in the last week of December. 

Prompt availability is good across all three grades in Mauritius’ Port Louis, a trader said. Lead times of around three days are advised.

Off Namibia's Walvis Bay, bunker availability is good and lead times of around five days are recommended by traders. VLSFO has been in high demand in the port, according to a source. Bunker disruptions may occur off Walvis Bay from Thursday and continue well into next week because of rough weather. 

By Manjula Nair

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