Northwest Europe

In the ARA hub, securing very prompt delivery dates for HSFO and VLSFO bunker fuel grades may be difficult. A trader recommends lead times of 5-7 days for both grades.
LSMGO availability is much better with some suppliers able to offer the grade for prompt lead times of 2-4 days.

The ARA’s independently held fuel oil stocks have averaged 14% higher so far this month than across December, according to Insights Global data.

The ARA’s fuel oil stocks have risen for the third consecutive month. The region has imported 186,000 b/d of fuel oil so far this month, down from 220,000 b/d imported in December, according to cargo tracker Vortexa.

The UK has been the biggest fuel oil source for the ARA hub, accounting for 22% of the ARA’s total imports this month. Poland (14%) has ranked second, while Germany (11%) is in third position.

The ARA’s independent gasoil inventories – which include diesel and heating oil – have increased by 3% so far this month.

In the German port of Hamburg, lead times of 3-5 days are recommended for all three bunker fuel grades, according to a trader. Availability across all bunker grades is good, the trader added.

Off Skaw, HSFO availability continues to be tight. A trader advises lead times of 7-10 days for the high-sulphur grade. Meanwhile, availability of LSMGO and VLSFO is normal with lead times of 5-7 days recommended for both bunker grades off Skaw.

Mediterranean

HSFO supply pressure from last week has eased in Gibraltar, a trader said. Lead times for HSFO are recommended at 6-8 days, while for VLSFO, lead times of 5-6 days are advised. LSMGO availability is comparatively better and the grade is available with shorter lead times of 4-6 days.

Canary Islands ports continue to see additional demand from vessels diverted around the Cape of Good Hope to avoid the Red Sea. There has been an increase in bunker enquiries this week, according to a trader. In Las Palmas, prompt HSFO supply is currently very tight. Lead times for HSFO vary widely between 7-14 days.

Some suppliers can still offer the grade for prompt delivery dates in Las Palmas, but these offers can be priced as much as $70/mt higher than for dates further out. A total of three suppliers can offer HSFO in the two Canary Islands’ ports of Las Palmas and Tenerife.

Availability is normal off Malta, according to a trader. Bunkering is expected to proceed smoothly amid the calm weather forecast off Malta this week, the trader added.
Availability is also normal at the Greek port of Piraeus, but bunker disruptions may arise due to bad weather conditions prevalent in the area. Strong gale-force wind gusts of 37 knots are forecast in Piraeus on Wednesday. Calmer weather is forecast for the rest of the week.

In Turkey’s Istanbul, availability across all bunker fuel grades is normal. Weather disruptions are likely to impact bunkering with wind gusts of 26 knots forecast in the area on Wednesday. It is forecast with comparatively calmer weather for the remainder of the week.

Africa

In the South African ports of Durban and Richards Bay, availability of VLSFO and LSMGO grades is still very tight. A trader recommends lead times of up to two weeks for VLSFO to ensure coverage from suppliers. LSMGO supplies have been running lower and over 10 days of lead times are now advised. Demand has normalised in both ports, according to the trader.

Meanwhile, in Mozambique’s Nacala and Maputo ports, strong demand continues amid Red Sea vessel diversions. Both the ports are operating without any congestion, a source told ENGINE.

Availability of VLSFO and LSMGO bunker grades is good in both Nacala and Maputo, and Maputo also has HSFO available, the source added.

In Algoa Bay, speculations have been rife about whether the temporary offshore bunker suspension will be lifted in February by the South African Revenue Service (SARS). Last month, a port agent claimed the suspension was likely to be lifted from 1 February.

These speculations started after SARS amended its bunkering rules the Customs and Excise Act in December last year. But there are no new updates in the situation, a port agent told ENGINE.

Bunker deliveries in Algoa Bay came to a halt last September, when SARS detained bunker barges over import duty disputes. Supply has since been limited to in-port deliveries by one supplier in Port Elizabeth.

Source: ENGINE