Northwest Europe
Securing HSFO for prompt delivery dates in Rotterdam and in the wider ARA hub remains difficult. Tight availability of the grade has pushed Rotterdam’s HSFO price higher in recent weeks. The grade’s price has gained by $30/mt since 1 June, while Gibraltar’s HSFO price has declined by $28/mt in the same period.
As a result, Rotterdam, which typically prices HSFO at discount to Gibraltar, priced the grade at a rare $13/mt premium on Wednesday.
Several factors including the Russian import ban, sweetening of EU refineries’ crude slates, and the Kurdish export suspension have largely contributed to the tightening of HSFO supply in the ARA hub, sources say.
Recommended lead times for VLSFO and HSFO are about 5-7 days in Rotterdam – similar to last week. But LSMGO delivery lead times have slightly increased to 4-6 days from last week’s 3-4 days.
A drawdown in the ARA’s fuel oil stocks has added to the supply pressure in the bunkering hub. According to Insight Global data, the ARA’s independently held fuel oil stocks have averaged 7% lower so far this month than across May.
VLSFO and LSMGO availability is normal for delivery off Skaw. Meanwhile, HSFO supply is relatively tighter, a source says. Recommended lead times for all grades remain unchanged at 7-10 days. Barge availability is also reported normal there.
LSMGO availability is normal in the Norwegian ports of Bergen and Mongstad, a trader says.
Bunker fuel availability is normal in the German ports of Hamburg and Bremerhaven, with recommended lead times of five days.
Mediterranean
VLSFO and LSMGO availability remains normal in Gibraltar and Algeciras, with lead times unchanged at 3-4 days. On the other hand, HSFO supply remains tight for prompt delivery dates in Gibraltar Strait ports. Lead times of 5-7 days are generally recommended to ensure full coverage from all suppliers in the region.
Minimal congestion was reported in Gibraltar, Algeciras and Ceuta on Wednesday, according to port agent MH Bland. One supplier in Gibraltar and three in Algeciras reported delays on Wednesday.
VLSFO and LSMGO availability is normal for prompt deliveries in Las Palmas, a source says. Overall bunker demand has been sluggish in Las Palmas in recent weeks.
Availability is normal in Portuguese ports of Lisbon and Sines, a supplier says. Lead times of up to seven days are recommended for VLSFO and LSMGO supply.
Bunker fuel availability of VLSFO and LSMGO is normal for prompt delivery dates off Malta.
HSFO, VLSFO and LSMGO prompt availability is tight in the Greek port of Piraeus, a source says.
Africa
Bunkering has been suspended in South Africa’s Algoa Bay since last week due to rough weather conditions. Congestion was reported in Algoa Bay on Wednesday, with nine vessels waiting to receive bunkers at anchorage, according to Rennies Ships Agency.
Bad weather is forecast throughout this week, which could keep bunkering disrupted in Algoa Bay.
VLSFO and LSMGO availability in Durban and other South African ports is normal, where lead times of up to seven days are recommended, a source says.
Source: ENGINE, By Nithin Chandran, https://engine.online/news