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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Thursday, 06 October 2022 | 00:00

Northwest Europe
Suppliers can offer prompt deliveries of LSMGO in Rotterdam and other ports in the ARA hub, sources say. Supply of VLSFO is said to be normal in the region, while HSFO is tight for prompt dates.
The recommended lead time for VLSFO in the ARA is 3-4 days, while HSFO requires up to seven days, a source says.
Independently held fuel oil inventories in the ARA slipped to their lowest level since mid-May, according to Global Insights. The stocks decreased by 320,000 bbls to 6.59 million bbls in the week to 29 September, the data showed.
Signs of higher exports and dwindling Russian inflows could have contributed to the most recent stock draw.
Cargo tracker Vortexa has not registered any Russian fuel oil imports to the ARA since July, while instead picked up fuel oil cargoes flowing in from the UK, Germany, France, Greece, Saudi Arabia and other sources through most of this month.
The region’s gasoil stocks increased by 940,000 bbls, to 13.61 million bbls last week.
Supply of VLSFO and LSMGO is normal off Skaw, while HSFO is slightly tight for prompt delivery, a source says. Recommended lead times for VLSFO and LSMGO deliveries are around seven days, while HSFO requires a longer lead time.

Mediterranean
VLSFO and LSMGO supply is good in Gibraltar Strait ports, but securing a prompt delivery of HSFO can be difficult, sources say. Recommended lead times for VLSFO and LSMGO deliveries in the region are around three days, while HSFO requires longer period of up to seven days, a source says.
Prompt supply of VLSFO and LSMGO is said to be normal in Gibraltar, Algeciras, Ceuta and Las Palmas, sources say.
HSFO is particularly tight in the Canary Islands and has lifted its benchmark to big premiums over regional ports. A supplier has been running low on product and expects a resupply cargo to boost its supplies after it arrives on 13 October. Another supplier is mostly supplying on a term contract basis, sources say.
Bunkering resumed at Las Palmas’ outer anchorage on Tuesday. Strong winds and swells had kept bunkering suspended at this more weather-exposed anchorage since Thursday last week. Swells have come down to a moderate level of 1.1 metres now, from around 2 metres last week, according to port agent MH Bland. Some suppliers have experienced several hours of delay this week.
Slight congestion has been reported at inner anchorage in Algeciras, while no backlogs have been reported in Malta or Ceuta this week. Nine vessels were due to arrive for bunkers in Ceuta on Wednesday, up from three on Tuesday, shipping agent Jose Salama & Cia says.
Bunker supply across all grades is normal in Malta, with some suppliers offering prompt deliveries, a source says.
In the Greek port of Piraeus, suppliers can offer limited quantities of VLSFO, LSMGO and HSFO for prompt dates.

Africa
Bunkering has been put on standby amid high swells in Algoa Bay, according to Rennies Ships Agency. Conditions are forecast to remain rough until Monday next week. 13 vessels are due to arrive for bunkers in Algoa Bay and Port Elizabeth until then.
Suppliers in Algoa Bay are said to have normal availability of fuel volumes to supply once weather conditions improve. VLSFO continues to be priced considerably lower than in nearby Durban.
Availability of LSMGO is normal in Durban, but VLSFO is tight for prompt delivery, sources say. The recommended lead time for VLSFO delivery in Durban is around 10 days. Some suppliers are expecting replenishment to arrive around 12 October, sources say.
Source: ENGINE (By Shilpa Sharma, https://engine.online/)

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