Low sulphur bunker fuels are still in good availability across European and African ports. HSFO can be tight for prompt dates with suppliers in the Canary Islands and South Africa.
Supply is ample across grades in ARA and the Gibraltar Strait ports. Rising refinery margins across Europe have spurred some refiners to increase runs and lifted utilisation rates in recent weeks. Higher production could yield more fuel oil as a by-product.
ARA’s fuel oil inventories were heavily drawn last week amid an export pull, however, and fell to a level 17% lower than their weekly average in March.
VLSFO is tight for prompt dates with certain suppliers in the Canary Islands, but can be supplied on short notice from others. HSFO380 is only offered by two suppliers across Las Palmas and Tenerife and lead times of around six days are generally recommended, compared to 3-4 days in ARA and the Gibraltar Strait.
High swell limited anchorage bunkering in Las Palmas to inner anchorage in the middle of last week. The suppliers had caught up with delivery backlogs, before the swell picked up again on Tuesday this week. Rough seas have made it complicated to deliver stems at outer anchorage, according to port agency MH Bland. But the disruptions have so far not caused significant delays.
High winds and swell from the northwest limited offshore bunkering to Area 4 in Malta on Wednesday. Area 4 is more sheltered from northwest winds than the country’s five other offshore areas.
A large fuel oil cargo is bound for Lome from ARA and expected to arrive on Friday. Fuel oil is typically imported from ARA to replenish stocks in West African bunker locations.
HSFO180 remains tight for prompt supply dates in South African ports. Prompt availability of VLSFO and LSMGO remains good. Domestic South African refinery capacity took a hit last year, when two of the country’s refineries were shut following a fire and an explosion, increasing its reliance on imports.
High swell has disrupted anchorage bunkering in Algoa Bay this week. Buyers may have moved some deliveries into Port Elizabeth, but at higher costs. Calling costs for berthing and extra fees for bringing barges into Port Elizabeth can add more than $40/mt to the price of stems, sources say.
Source: ENGINE (https://engine.online/)