Northwest Europe
Prompt LSMGO availability has tightened in the ARA hub amid barge loading delays at oil terminals, three sources said. Most suppliers are no longer in a position to offer prompt deliveries, as their barges have been held up for days waiting to load product at oil terminals, a trader said.
It remains uncertain when the loading delays will ease, but if they persist for an extended period, LSMGO prices in the ports of the ARA hub are likely to rise, another trader said.
Lead times for LSMGO have doubled from last week’s 3–5 days to 7–10 days now, a source said.
HSFO and VLSFO availability remains normal in Rotterdam and in the wider ARA hub, a trader told ENGINE. Suppliers can offer prompt delivery dates for both grades, with lead times of 3–5 days advised for optimal coverage.
The ARA’s independently held fuel oil stocks have averaged 9% lower so far this month than across August, according to Insights Global data.
The region has imported 237,000 b/d of fuel oil in September so far, up from 223,000 b/d imported in August, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 56/44 ratio so far this month, almost similar to August when the ratio was also tilted towards LSFO at 53/47.
The Bahamas has replaced the UK for the topmost spot as the ARA’s biggest fuel oil import source so far this month, accounting for 17% of the total imports. The UK has come in second place, accounting for 15% of the ARA’s total imports. The US and Brazil have ranked third, each accounting for 13% of the ARA’s total imports, closely followed by Poland (10%) and Turkey (9%).
The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 13% so far this month. The region has imported 305,000 b/d of gasoil in September so far, down from 355,000 b/d of gasoil imported in August, according to Vortexa data.
In Germany’s Hamburg port, prompt availability across all three grades is good, a trader said. Lead times have remained unchanged in the past few months, with suppliers still able to offer all three grades within 3–5 days.
Mediterranean
HSFO supply pressure has eased in Gibraltar. Suppliers can offer the grade for prompt delivery dates, a trader said. As a result, lead times for HSFO have reduced from last week’s 5–7 days to 3–5 days now.
VLSFO and LSMGO availability continues to remain normal in Gibraltar, with lead times of 3–5 days advised for both grades. Bunkering disruptions are likely to impact Gibraltar on Thursday and Saturday due to adverse weather forecast in the port. Wind gusts of 20 knots are forecast in Gibraltar on Thursday and are expected to intensify to up to 28 knots on Saturday.
In Las Palmas, prompt HSFO availability remains very tight as two suppliers are still awaiting replenishment cargoes, a trader told ENGINE. Lead times of 5–7 days are advised for HSFO in the port. Availability of VLSFO and LSMGO is normal in the port and prompt delivery dates are available. Lead times of 3–5 days are advised for both grades in the port.
Bunker demand has been low in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, a trader told ENGINE.
The Greek port of Piraeus has VLSFO and LSMGO supply available for prompt delivery dates, the trader said. Prompt HSFO supply is subject to enquiry there. Lead times of 3–4 days are recommended for all three grades.
Off Malta, bunker availability is normal with lead times of 3–4 days advised for all three grades, a trader said. Earliest delivery dates of 28 September are offered by suppliers for all three grades. Rough weather may cause bunkering disruptions off Malta between Wednesday and Saturday.
Turkey’s Istanbul port has good availability for all three grades. Lead times of 3–4 days are recommended for HSFO, VLSFO and LSMGO in the port. Bunkering may be hampered between Wednesday and Saturday when bad weather is forecast in the port area, according to a source.
Africa
VLSFO availability is tight in the South African ports of Durban and Richards Bay. A trader recommends lead times of 7–10 days for the grade.
Securing prompt LSMGO in Durban remains a challenge as availability continues to remain tight in the port. Lead times of up to two weeks are advised for optimal coverage.
VLSFO and LSMGO supply has improved slightly in Mauritius’ Port Louis, with some suppliers able to offer prompt supply. However, lead times of over 10 days are generally recommended to ensure full coverage from suppliers.
Mozambique’s Nacala and Maputo ports are witnessing stable demand, a source told ENGINE.
VLSFO availability is currently running tight in Nacala, the source said. However, the port has ample HSFO and LSMGO available.
Maputo has adequate VLSFO and LSMGO supply available, the source added.
In Angola’s Luanda port, a state-run bunker supplier halted VLSFO supply last month and has yet to provide any update on when the supply might resume.
Source: ENGINE
