ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Northwest Europe

HSFO continues to be tight for very prompt delivery (0-2 days) in Rotterdam and the wider ARA hub, according to a trader. Availability is normal for VLSFO and LSMGO, with some suppliers offering both grades for prompt dates. Lead times of 3-5 days are generally recommended for all grades, the trader added.

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

The region has imported 223,000 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 53/47 ratio so far this month, indicating a slight tilt towards LSFO compared to July, when the ratio was 50/50.

The UK has emerged as the ARA’s biggest fuel import source, accounting for 18% of the total imports so far this month. Estonia and the US have ranked second, each accounting for 17% of the ARA’s total imports, while Lithuania and Poland (10% each) have come in third position.

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have gained marginally by 3% this month. 

The region has imported 367,000 b/d of gasoil so far this month, up from 303,000 b/d of gasoil in July, according to Vortexa data.

In Germany’s Hamburg port, bunker fuel availability has remained good for prompt delivery across all grades, according to a trader. Lead times of 3–5 days are advised for all grades, the trader added.

Mediterranean

Supply tightness in the Gibraltar Strait ports has eased now, with prompt delivery dates available for all grades. A trader has advised lead times of 3–5 days for all grades, down from 4–6 days last week.

Adverse weather may trigger bunkering disruptions in Ceuta on Friday, a source said.

Availability has improved in the Canary Islands’ port of Las Palmas, which experienced supply tightness across all grades over the last few weeks. Lead times have reduced as a result from 5–7 days last week to 3–5 days now. Las Palmas may witness bunkering disruptions on Wednesday amid bad weather conditions forecast in the port area, a source said.

Other Mediterranean ports of Piraeus, Malta Offshore and Turkey have witnessed muted demand this week, according to a trader.

Prompt availability of HSFO and VLSFO is tight in the Greek port of Piraeus, with lead times of 5–7 days recommended for both grades. LSMGO availability is comparatively better with suppliers offering prompt delivery. A trader advised lead times of 3–4 days for LSMGO. Bunkering may be disrupted in Piraeus on Wednesday due to the rough weather forecast in the port area.

Availability of HSFO is tight for prompt delivery off Malta, with traders recommending lead times of 4–6 days for the grade. Prompt VLSFO and LSMGO availability is relatively better with lead times of

3–4 days advised. Bunkering may be impacted on Friday and Saturday due to rough weather, a source said.

Bunker availability is normal in Turkey’s Istanbul, with lead times of 3–4 days advised for all grades.

Strong wind gusts may hamper bunkering on Wednesday, according to a source.

Vessel traffic was temporarily halted in the Bosphorus Strait on Sunday after a ship reported engine failure near the entrance of the Strait. The vessel traffic resumed shortly and did not impact bunkering in Istanbul, a trader told ENGINE.

Africa

VLSFO supply is tight for prompt deliveries in the South African ports of Durban and Richards Bay, with recommended lead times of 7–10 days. 

LSMGO supply is also tight in Durban for prompt deliveries, with lead times of up to two weeks recommended in the port, according to a trader.

Rough weather may impact Durban on Wednesday, with strong wind gusts of up to 33 knots forecast. Bad weather is forecast intermittently till Saturday, with wind gusts in the range of 20-34 knots.
By Manjula Nair, ENGINE