ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Northwest Europe

All bunker grades remain tight for prompt deliveries in Rotterdam and in the wider ARA hub. Availability has tightened further this week, stretching out lead times from 5–7 days to 7–10 days now. Several bunker suppliers continue to experience barge loading delays at terminals in the ARA hub, a trader told ENGINE. Demand has dropped in the ARA hub this week, the trader added.

The ARA’s independently held fuel oil stocks have averaged 1% higher so far this month than across September, according to Insights Global data.

The region has imported 248,000 b/d of fuel oil so far this month, a slight increase from 229,000 b/d imported in September, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 45/55 ratio so far in October, compared to September’s 51/49 ratio, which had a higher tilt towards LSFO.

The UK has remained the region’s biggest fuel oil import source so far this month, accounting for 24% of the total imports. Lithuania has ranked second, accounting for 15% of the ARA’s total imports, followed by the US (11%), Poland (10%), Germany (9%) and Israel (8%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have dipped by 8% so far this month. The region has imported 440,000 b/d of gasoil so far this month, a significant increase from 291,000 b/d of gasoil imported in September, according to Vortexa data.

In the German port of Hamburg, prompt availability is ample across all bunker grades. Lead times have remained unchanged in the past few months, with suppliers able to offer all three grades within 3–5 days.

Mediterranean

Prompt bunker availability is good for all three grades in Gibraltar Port. Lead times of 3–5 days are advised for optimal coverage. Weather-induced disruptions may impact bunkering in Gibraltar on Wednesday and Thursday. Wind gusts of up to 27 knots are forecast on Wednesday, while wind gusts of up to 22 knots are forecast on Thursday in the port area.

In the Canary Islands port of Las Palmas, HSFO tightness continues amid delays in the arrival of replenishment cargoes. Lead times of 7–10 days are advised for the grade. Prompt availability of VLSFO and LSMGO is good in Las Palmas, with lead times of 3–5 days recommended. Rough weather may complicate bunker deliveries in Las Palmas from Saturday and most of next week as well, a source said.

Bunker deliveries by truck in Spain may be affected by the nationwide strike on 28 October. “Our drivers will continue to work, but strikers may obstruct motorways, port entrances, or loading facilities,” a Spanish bunker supplier notified. The strike action will impact truck deliveries across all Spanish ports, another source confirmed.
Other Mediterranean bunkering hubs like Malta Offshore and Istanbul have witnessed muted bunker demand, a trader told ENGINE. Piraeus has witnessed negligible demand, the trader added.

Securing prompt availability of HSFO is a challenge in Greece’s Piraeus port, the trader said. HSFO is limited in supply in Piraeus for the remaining days of this month. Prompt availability for VLSFO and LSMGO is good and lead times of 3–4 days are advised for both grades. Inclement weather may hamper bunkering in Piraeus from Wednesday to Saturday, a source said.

Off Malta, prompt bunker supply is good in availability across all three grades, a trader said. Lead times of 3–4 days are recommended for all grades. Adverse weather conditions are forecast off Malta between Wednesday and Saturday and may impact bunkering, according to a source.

Suppliers can also offer prompt delivery dates in Turkey’s Istanbul port. Availability across all three grades is good in the port. Lead times of 3–4 days are recommended for all three grades. Bad weather may disrupt bunkering in Turkey intermittently between Wednesday and Saturday, a source said.

Africa

Prompt VLSFO bunker availability is still tight in South Africa’s Durban and Richards Bay, a trader told ENGINE. Lead times of 7–10 days are recommended for full coverage from suppliers. In Durban, LSMGO availability continues to be dry. The grade’s availability is subject to enquiry in the port, a trader said. The Durban port area will experience adverse weather on Wednesday, which may disrupt bunkering there.

Meanwhile, in Angola’s Luanda, VLSFO supply has resumed on Wednesday, a source said. A bunker supplier temporarily halted offering the grade in August. LSMGO availability in Luanda is good. Both grades are now offered at anchorage by barge, a source said.
Source: ENGINE, By Manjula Nair, https://engine.online/news

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