HSFO380 supply has tightened in Malta, and weather disruptions are expected to delay bunkering further in Las Palmas and Algoa Bay this week.
Bunker fuels are generally in good availability across European and African bunkering ports, but there are some pockets of tightness, and rough weather disrupting deliveries.
Suppliers in the Amsterdam-Rotterdam-Antwerp (ARA) region and other northern European ports can deliver prompt stems of VLSFO, LSMGO and HSFO380. No significant shortages have been reported.
Fuel oil imports from Russia, Poland and Scandinavian countries helped grow independent ARA fuel oil inventories by 9% last week. Stock levels have come up to five-week highs of 7.70 million bbls, according to Insights Global data.
Another weekly draw for ARA’s gasoil stocks has left less than 15 million bbls in storage for the first time since the start of the pandemic, which saw a massive build in March and April.
VLSFO supplies have tightened with several suppliers in Istanbul and boosted prices against other regional ports. Its price has swung to a premium over Piraeus, and widened its premium over Novorossiysk to $70/mt. There are no immediate prospects for when the Turkish suppliers will replenish stocks.
VLSFO prices in Istanbul, Piraeus and Novorossiysk since 1 August
A supplier has run out of HSFO380 to supply in Malta, and can only offer smaller clips of the grade for delivery around two weeks out. Malta does not have any domestic refineries. Bunker suppliers rely on imported cargoes to supply from either off Malta’s islands or in its ports.
HSFO380 is still available from another supplier in Malta, but Malta’s price for the grade has gone up to premiums of around $9-12/mt over Gibraltar and Algeciras. Malta’s price rose above the two Gibraltar Strait ports last week.
HSFO380 prices in Malta, Gibraltar and Algeciras since 1 September
Bunker fuels are generally in good stock across other Mediterranean ports, but spells of bad weather are set to disrupt bunkering in certain ports this week.
Congestion has built in Gibraltar, where seven vessels were in line waiting for bunker barges to become ready to supply them on Wednesday morning, MH Bland says. Two suppliers are delayed by around half a day.
Some of the vessels may have been booked to Gibraltar instead of Las Palmas, which has been pummelled by high swells and seen bunkering restricted to inner anchorage. Certain suppliers have been delayed by at least a day.
Las Palmas is forecast with strong swells until Sunday, which could put significant pressure on the more limited space in the port’s inner anchorage, and potentially push deliveries to Gibraltar Strait ports and Tenerife.
Swells were forecast to push above 2.5 metres also in Tenerife on Wednesday, but as they come in from the north, the port is likely to be sheltered in its location on the southern side of Tenerife island.
HSFO380 can be in tight supply for prompt delivery dates in the Canary Islands, with fewer suppliers stocking the grade than in the Gibraltar Strait.
Bunkering was called off in Algoa Bay on Monday morning because of strong winds and swell. Operations have resumed to allow bunker suppliers to work through backlogged deliveries.
Another bout of strong winds and swells is forecast to hit the South African anchorage location from Thursday. Shipping agent Sturrock Grindrod expects bunkering to be suspended again.
Source: ENGINE (https://engine.online/)