ENGINE: Europe & Africa Fuel Availability Outlook
Supply of VLSFO and HSFO is said to be slightly tight in the ARA hub this week, where securing prompt deliveries can be difficult, sources say.
Recommended lead times for VLSFO and HSFO in the ARA are around five days. Some suppliers can offer prompt supply for limited quantities, a source says.
Meanwhile, LSMGO is more readily available in ARA ports, requiring lead times of around three days, a source says. LSMGO demand has been robust in ARA.
Independently held gasoil stocks in the ARA have grown for a second consecutive week after falling to six-week lows in late July. The stocks increased by 20,000 bbls to 11.21 million bbls in the week ending 11 August, according to Insights Global data.
Fuel oil stocks in the region also increased by 150,000 bbls to 7.67 million bbls last week, Insights Global data shows. The stocks have increased despite a slump in Russian inflows this month.
Russia has dropped out of the list of ARA’s fuel oil sources in the first two weeks of August, with no cargoes recorded by cargo tracker Vortexa.
As the deadline for the embargo on Russian oil product imports nears, refineries and oil traders in northwest Europe are gradually shifting to non-Russian oil. Some of the Russian oil imports to ARA are replaced with supplies from the UK, Lithuania, the UAE, Colombia, Germany and Finland for imports this month, according to Vortexa.
HSFO can be slightly tight for prompt delivery off Skaw, while some suppliers can offer LSMGO for early dates, a source says. Recommended lead times for the two grades are 4-7 days.
Bunker supply is said to be normal in Hamburg, where some suppliers can offer prompt deliveries, a source says. Recommended lead times for VLSFO, HSFO and LSMGO are around five days, the source adds.
LSMGO availability is normal in Bremerhaven, while VLSFO and HSFO deliveries remain subject to enquiries.
Prompt availability of HSFO can be hard to find in Gibraltar, but suppliers can offer LSMGO on early dates, sources say. Recommended lead times for VLSFO and HSFO are around 5-7, while LSMGO has a shorter lead time of three days.
Minimal congestion and backlog have been reported in Gibraltar Strait ports this week. There was one vessel waiting to bunker in Gibraltar on Wednesday afternoon and no backlog was reported in Ceuta. Six vessels are due to arrive for bunkers in Ceuta Wednesday, according to shipping agent Jose Salama & Cia.
Bunker availability is said to be normal in Ceuta, and suppliers can offer prompt deliveries, a source says.
In Las Palmas, bunkering is progressing smoothly at both inner and outer anchorages. But there are concerns that bad weather could disrupt deliveries between Wednesday and Saturday, port agent MH Bland says. Demand for VLSFO and LSMGO has been good this week in Las Palmas.
All ports in Malta and offshore bunkering areas are open for supply, with no backlogs reported, according to Seatrans Shipping agency. Thirteen vessels were scheduled to arrive for bunkers on Wednesday. There is good demand for VLSFO and LSMGO in ports and off Malta.
Suppliers continue to deliver stems smoothly in Algoa Bay after bunker operation resumed in the region on Monday. Bunker operation was suspended in the bay on Friday and over the weekend due to rough weather conditions, according to Rennies Ships Agency.
Going forward, bunker operations in Algoa Bay might be delayed or suspended as bad weather is forecast between Thursday and Saturday.
12 vessels are scheduled to arrive for bunkers in Algoa Bay and Port Elizabeth this week, Rennies says.
Availability of VLSFO and LSMGO is said to be normal in Algoa Bay and Durban, a source says.
Recommended lead times for the two grades are around seven days, the source adds.