Fuel availability is generally good across Europe. Some bunker suppliers have plenty of product to sell amid tepid bunker demand, and a push from refineries to supply as they ramp up refinery runs.
Economic activity is on the rise in Europe as several major countries, including Germany, France, Italy and the UK have announced or started easing Covid-19 restrictions as part of their recovery plans. European refineries have responded by increasing runs to produce more fuels, which has contributed to supply overhang of VLSFO and LSMGO in pockets across the continent.
VLSFO is in plentiful supply in the ARA and Gibraltar Strait hubs. Independent fuel oil stocks were heavily drawn in ARA last week, while bunker fuel oil grades continue to be readily available in the hub. Some suppliers will only deliver VLSFO stems above a certain size and may have longer lead times.
LSMGO availability has improved in ARA this week, after loading delays at a refinery’s jetty clogged up resupply logistics for some suppliers last week. The suppliers now offer prompt deliveries as normal.
LSMGO remains tight with certain suppliers in the Canary Islands, where a supplier is offering LSMGO stems at low prices to move product. Mediterranean gasoil importers have taken delivery of significantly higher cargo volumes in April, which may have contributed to a temporary glut in some places.
HSFO380 stems require around four days of lead time in ARA and Gibraltar Strait ports, while six days are recommended in the Canary Islands as a supplier is out of product.
HSFO380 is in ample supply in Russian Black Sea ports. Suppliers in Novorossiysk and Taman have been eager to move product and sold at sharply reduced prices. Their pricing is now competitive with ARA and St. Petersburg, which typically have Europe’s lowest prices. VLSFO is also plentiful in Black Sea ports, while LSMGO is more limited.
South African refiner Engen will convert its 125,000 b/d Durban refinery into an oil storage terminal following an explosion and low profit prospects. The refinery has not been producing any fuels since an explosion and fire knocked it offline in December.
South Africa has increasingly imported fuel oil and gasoil this year to cover domestic transport fuel demand, including bunkering. VLSFO and LSMGO are available for prompt supply in South African ports, including Durban. HSFO180 is in limited supply still.
Source: ENGINE (https://engine.online/)