Northwest Europe

VLSFO and LSMGO availability is normal in Rotterdam and in the wider ARA hub. HSFO availability is slightly tight, a trader said. Despite this, lead times remain largely unchanged, with a trader recommending 3–5 days for all grades.

The ARA’s independently held fuel oil stocks have averaged 3% lower so far this month than compared to July, according to Insights Global data.

The region has imported 251,000 b/d of fuel oil in August so far, down from 296,000 b/d imported in July, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 55/45 ratio so far this month, indicating a slight tilt towards LSFO compared to July, when the ratio was 50/50.

The US has replaced Germany as the ARA’s biggest fuel import source, accounting for 22% of the total imports this month. Estonia has ranked second with 19% of the total imports, and France stands in third place at 13%, followed by Poland (11%), the Bahamas (10%) and Germany (9%).

The ARA hub has exported 294,000 b/d of fuel oil so far this month, a significant increase from the 224,000 b/d exported in July. Fuel oil cargoes have departed for Greece (22%), Spain (13%), Senegal and Denmark (5% each), Vortexa data shows.

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased slightly by 1% so far this month. The region has imported 368,000 b/d of gasoil so far this month, up from 303,000 b/d of gasoil in July, according to Vortexa data.

Bunkering is proceeding smoothly in Germany’s Hamburg port, where availability is good across all grades, according to a trader. Lead times of 3–5 days are recommended for optimal coverage from suppliers.

Mediterranean

In Gibraltar, tightness in prompt supply has stretched into its third consecutive week. Lead times of 4–6 days are still recommended for all grades. Minimal congestion was reported in the port on Wednesday, with bunkering proceeding smoothly amid calm weather conditions.

In the Canary Islands’ port of Las Palmas, lead times have increased slightly as some suppliers have a tight delivery schedule until 28 August. Lead times have stretched to 5–7 days as a result. Las Palmas has been witnessing high demand over the past few weeks. Bunkering disruptions may occur due to bad weather forecast in the port area between Wednesday and Saturday, according to a source.

Demand has picked up this week in the Greek port of Piraeus, a trader said. Bunker fuel availability is tight in Piraeus till the end of this month, with the earliest delivery date for VLSFO and LSMGO stretching out to 27 August. Bunkering may be disrupted between Wednesday and Saturday due to adverse weather forecasts in the port area, a source said.

Securing prompt delivery of HSFO can be difficult off Malta due to the grade’s tight availability, according to a trader. Supply of VLSFO and LSMGO grades is relatively better. However, bunker demand is said to be weak off Malta. Rough weather-induced bunkering disruptions may occur on Wednesday and Thursday off Malta, according to a source.

Prompt availability of bunker fuels is tight in Turkey’s Istanbul port. Bunker supply is said to be fine for delivery dates after 24 August. Bad weather is forecast in Istanbul between Wednesday and Saturday and may hamper bunkering in the port area.

Africa

The South African port of Durban continues to grapple with tightness for LSMGO prompt delivery. A trader advises lead times of up to two weeks for the grade. Strong wind gusts of up to 38 knots have been forecast in Durban on Wednesday. Rough weather will continue till Saturday, with strong wind gusts ranging between 19-36 knots.

VLSFO is also running tight, but lead times are comparatively shorter and recommended at 7–10 days in Durban and Richards Bay.

In Mozambique’s Nacala, all three bunker grades have good availability, a source said. While demand is robust for HSFO and VLSFO, LSMGO demand has been low.

Similarly, LSMGO demand is low in Mozambique’s Maputo despite the good availability of the grade. VLSFO availability is good, and so is demand, the source added.

Meanwhile, in Angola’s Luanda, a state-run bunker supplier has halted VLSFO supply temporarily in the port, a source said. There has been no update on when supply is likely to resume. LSMGO availability is normal and is supplied by a barge at anchorage, the source added. Bunkering is expected to proceed smoothly amid calm weather forecasts in the port for the rest of the week, a source said.

Bunker supply pressures have eased slightly in Mauritius’ Port Louis. Lead times have come down from over two weeks in the last couple of weeks to around ten days now. Bunkering may be affected by bad weather forecasts from Wednesday till Sunday in the port, a source said.

Source: ENGINE by Manjula Nair