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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Northwest Europe
Availability across all grades is normal in Rotterdam and in the wider ARA hub, according to a trader. Lead times of 4-6 days are recommended for HSFO and VLSFO. LSMGO availability is relatively better, and the grade can be supplied with a shorter lead time of 2-4 days.

The ARA’s independently held fuel oil stocks have averaged 11% higher so far this month compared to across February, according to Insights Global data.

The ARA’s fuel oil stock gains have been supported by higher imports. The region has imported 300,000 b/d of fuel oil so far this month, up from 256,000 b/d in February, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 29/71 ratio so far this month, a shift from the 45/55 ratio in February.

Lithuania has emerged as the ARA hub’s biggest fuel oil import source so far this month, accounting for 34% of the region’s total imports. Mexico has ranked second, accounting for 25% of the total imports, followed by Sweden (17%), Poland (12%) and Finland (6%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 6% so far this month. The ARA has imported 369,000 b/d of gasoil so far this month, up from 301,000 b/d imported in February.

Off Skaw, lead times remain unchanged for VLSFO and LSMGO, with a trader advising 5-7 days for both grades. HSFO supply continues to remain tight off Skaw, with supply only available for non-prompt dates. Lead times of 7-10 days are recommended for HSFO. Rough weather may trigger bunkering disruptions off Skaw intermittently on Wednesday and the rest of the week, a source said.

Mediterranean
After intermittent bouts of bad weather that caused congestion and backlog in Gibraltar last week, bunkering has been progressing smoothly in the port this week. Demand has been muted this week in the port, a trader told ENGINE.

Availability remains good across all grades, and lead times have also come down in Gibraltar. Lead times of 5-6 days are recommended for HSFO, down from 6-8 days in the previous week. LSMGO and VLSFO lead times have also come down from last week’s 3-4 days to 2-4 days now.

Meanwhile, demand has picked up in the Mediterranean ports of Malta and Istanbul since Friday, a trader said. These ports witnessed a slump in demand over the past couple of weeks, but demand has picked up coming into this week.

Availability is good for HSFO and LSMGO in the Greek port of Piraeus. Securing prompt VLSFO may be a challenge as supply has been tight in the port. Demand is yet to improve in Piraeus, with not many enquiries seen over the past week, the trader added. Calmer weather conditions were observed in Piraeus on Wednesday and may continue for the rest of this week, making it conducive for bunkering.

Off Malta, bunker operations have been running normally since Tuesday after bad weather triggered a brief suspension on Monday. But some suppliers are still working to clear bunker backlogs, a source said. Availability is normal across all grades there, a trader said. Calm weather conditions are forecast for the rest of this week and could help clear backlogs and ease congestion.

Bunker fuel availability is normal in Turkey’s Istanbul port, a source said. Some suppliers could offer bunker grades for prompt delivery dates. Calm weather conditions are forecast for the rest of this week.

Africa
LSMGO supply remains extremely tight in the South African ports of Durban and Richards Bay, according to a trader. VLSFO supply has improved over the past two weeks. Lead times of 7-10 days are recommended for VLSFO in both ports, while LSMGO requires lead times of more than ten days.

Mozambique’s Nacala port has good availability across all three bunker fuel grades amid average demand, a source said.

Availability of VLSFO and LSMGO grades is good in Maputo, with supply improving over the past week, the source adds. The port is currently witnessing average bunker demand.

Meanwhile, the tropical storm Filipo hit the central coast of Mozambique on Tuesday, bringing strong wind gusts, heavy rainfall and rough waves to the region. Strong wind gusts of 38-40 knots hit Maputo on Wednesday, which potentially impacted barge deliveries in the port.
Source: ENGINE, By Manjula Nair, https://engine.online/news

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