HSFO & VLSFO supply improves in the ARA

Tight bunker supply in Las Palmas

LSMGO tightens off Luanda

PHOTO: A container terminal in the Port of Luanda. Getty Images

Northwestern Europe

HSFO and VLSFO availability has improved in Rotterdam and the wider ARA hub, a trader told ENGINE. Suppliers can offer prompt delivery dates for all three grades, within lead times of 3-5 days. 

The ARA’s independently held fuel oil stocks are down by 13% so far this month compared to February, according to Insights Global data. At 7.31 million barrels, the region’s fuel oil stocks are at their lowest so far this year.

The region has imported 185,000 b/d of fuel oil so far this month, down from 298,000 b/d of fuel oil in February, according to data from cargo tracker Vortexa. The ARA has imported low sulphur fuel oil (LSFO) and HSFO in a 46/54 ratio so far this month, similar to February’s 45/55 ratio, which was also tilted towards HSFO.

Mexico (22% of the total) has emerged as the region’s topmost import source. Other import sources include the UK (14%), Poland (11%), France (10%), Lithuania and the US (8% each), and Estonia (7%). 

The region’s independent gasoil inventories - which include diesel and heating oil – have averaged 13% lower so far this month. The ARA hub has imported 275,000 b/d of gasoil and diesel so far this month, marking a marginal decline from 277,000 b/d imported in February, according to Vortexa data. 

Prompt bunker supply is good in Germany’s Hamburg port, a trader said. All bunker grades require lead times of 3-5 days, consistent with the last few months. 

Mediterranean

Prompt bunker supply is tight for ports in the Gibraltar Strait, a trader said. Lead times of 7-9 days are recommended for all three grades in Gibraltar and Algeciras. Bunkering is proceeding smoothly in ports in the Gibraltar Strait and Ceuta amid conducive weather. Bunkering disruptions may occur in Gibraltar on Friday when strong wind gusts of around 28 knots are forecast. 

Prompt supply is tight in the Canary Islands’ port of Las Palmas, a trader said. Lead times of 8-10 days are needed for all three grades.  

All bunker grades are tight for prompt availability in the Spanish port of Barcelona. Recommended lead times are 5-7 days, a trader said. 

Meanwhile, bunker supply is normal in the other Mediterranean ports of Istanbul, Piraeus and Malta Offshore, a trader told ENGINE. 

Bunker supply is well stocked in Turkey’s Istanbul port with suppliers offering prompt delivery dates. Lead times of 3-5 days are advised across all grades, a trader said. 

The Greek port of Piraeus has good bunker supply, a trader said. While HSFO availability is subject to enquiry, VLSFO and LSMGO require recommended lead times of 3-5 days. 

Malta Offshore has good bunker supply with prompt delivery dates available, the trader said. 

Africa

VLSFO supply is tight for prompt delivery in the South African ports of Durban and Richards Bay. Lead times of 7-10 days are advised for the grade in both ports, according to a trader. 

LSMGO remains dry in Durban, a trader said. The grade has been dry since the last week of January, when suppliers ran out of LSMGO stock. 

Port Louis in Mauritius has normal bunker availability. Prompt delivery is available with lead times of 5-7 days advised for all grades. 

Angola’s Luanda Offshore has good availability of VLSFO, a source said. Lead times of 4-5 days are advised for optimal coverage of the grade.  LSMGO availability has been tight recently and requires longer lead times of 6-7 days, the source added.

By Manjula Nair

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