ARA’s independent fuel oil inventories were drawn again last week, bringing them down to their lowest levels since March last year, Insights Global data showed. The hub’s gasoil inventories dropped to two-month lows and below the five-year average.
Despite the weekly stock draws, bunker supply of VLSFO and LSMGO continues to be readily available in the three ports, while three days of lead time are still recommended for HSFO380 stems.
VLSFO supply remains ample in Mediterranean ports amid low demand, and suppliers in the Gibraltar Strait have been pricing the grade at competitive levels to ARA. Gibraltar’s VLSFO price has held at a narrow $5/mt premium over Rotterdam. The fuel grade has been trading at closer levels between the two bunker hubs this month, with Gibraltar’s price occasionally dipping below Rotterdam’s.
HSFO380 is available from a greater number of suppliers in ARA than in the Gibraltar Strait, and priced $30/mt higher in Gibraltar than in Rotterdam.
HSFO380 supply has tightened in Istanbul this week, and pushed its price to wider premiums over nearby Piraeus and over Novorossiysk in the Black Sea. Istanbul’s suppliers expect to be resupplied from 30 July which could help rein in the port’s HSFO380 price.
A cyber attack has crippled port operations across South Africa since it hit the IT systems of state logistics firm Transnet on 22 July. Container handling and other key port services have been performed manually, but Transnet reiterated on Wednesday its systems are gradually coming back online.
High swell of more than 3 metres is set to disrupt bunkering in Port Elizabeth and Algoa Bay today. Bunkering is typically suspended with swells above 2.5 metres or wind speeds above 25 knots. The swell is forecast to range between 2.7-5.2 metres until Tuesday next week.
Strong winds are forecast in Ceuta and high swell in Las Palmas over the weekend, which could disrupt bunkering and delay deliveries. The weather forecast looks calmer for Gibraltar, Algeciras and Malta.
Source: ENGINE (https://engine.online/)