• Prompt deliveries are difficult to find in the ARA and Gibraltar Strait
• ARA’s gasoil stocks recover slightly from eight-year lows
• Congestion minimal in Gibraltar Strait ports
Supply of all grades remain tight in the ARA ports, and prompt deliveries are difficult to find. Recommended lead times for VLSFO and LSMGO in Antwerp and Rotterdam are 5-7 days, a source says.
Most suppliers are avoiding offers for prompt deliveries and stem validities have come down to around 10 minutes, the source adds.
ARA’s independently held gasoil stocks have recovered slightly in the week ending 28 April, according to Insights Global data. Stocks had dropped to fresh eight-year lows in the week before.
The recent uptick in stocks has not been reflected in any improved LSMGO availability in the bunker market. Supply is still limited for prompt dates.
Maintenances work at two major ARA refineries has capped production capacity, and attractive margins for diesel production have deprioritised some marine gasoil output in ARA.
Supply of HSFO380 is also tight in the ARA, where the minimum recommended lead time for the grade is seven days, sources say.
Availability is poor in several other European bunker locations as well, where suppliers continue to avoid Russian oil amid pressure to self-sanction.
The EU has moved one step closer to ban oil imports from Russia. The European Commission on Wednesday proposed an “orderly” phase out of Russian crude within six months and refined products by the end of the year. Supply in European bunker locations is expected to come under further pressure if a ban is in place, sources say.
Russia accounted for about 40% of the ARA’s total fuel oil imports last month. However, ARA’s dependence on Russian oil has come down from March, when the country accounted for 57% of total fuel oil imports, according to Vortexa data.
In the German port of Hamburg, prompt supply of VLSFO and LSMGO is tight, a source says. Recommended lead time for both the grades is five days in Hamburg.
Meanwhile, availability is reported normal off Skaw.
Availability is tight in Gibraltar Strait ports as well as in South African ports, including Durban.
Supply of both VLSFO and LSMGO is tight in Durban, and prompt deliveries are difficult to find, a source says. Recommended lead time for the two grades in Durban is 7-10 days.
Most suppliers are fully booked for prompt dates in Gibraltar, where recommended lead time is around five days. One supplier can offer VLSFO and LSMGO stems for earlier deliveries in Gibraltar, depending on the quantity demanded and estimated date of arrival of the vessel, a source says.
Weather condition in Gibraltar Strait ports have been calmer this week, allowing bunker operations to run smoothly. Congestion in Gibraltar was minimal on Wednesday morning, with three vessels waiting to bunker, says port agent MH Bland.
Suppliers in Algeciras are delivering stems at inner and outer anchorages, but some congestion is expected to build later due to slow vessel rotation, says MH Bland.
In Ceuta, all operations are running normally with no reported congestion.
In Malta, supply of VLSFO and LSMGO is tight and prompt deliveries are difficult to find, sources say. Conducive weather has helped suppliers to clear previous backlogs, and no delays have been reported recently. 10 vessels were due to arrive in and off Malta for bunkers on Wednesday, says Seatrans Shipping agency.
Source: ENGINE (https://engine.online/)