Europe & Africa Fuel Availability Outlook 18 March

ARA availability improves, prices remain high

Weather disrupts operations off Malta

Availability tight in Africa amid high demand

IMAGE: The commercial harbour in Las Palmas. Getty Images

Northwest Europe

Fuel availability has improved in the ARA bunkering hub, a trader told ENGINE. One supplier said it can deliver all fuel grades within a day, but it recommends that buyers enquire about stems as early as possible.

Fuel prices remain high in the ARA as the Iran war drags on into its third week. VLSFO and HSFO prices have increased by $260-290/mt since the conflict began, while LSMGO prices have increased by more than $450/mt.

The ARA’s independently held fuel oil stocks have slumped 19% lower so far in March compared to February, according to Insights Global data. At 5.22 million bbls, the region’s fuel oil stocks are at their lowest average since January 2022.

The region has imported around 222,000 b/d of fuel oil so far in March, an increase from the 192,000 b/d imported in February, according to cargo tracker Vortexa. A large share of the supplies has arrived from France (39%), Poland (34%) and the UK (21%).

The region’s independent gasoil inventories - which include diesel and heating oil – have fallen by 70,000 bbls from February, Insights Global data shows.

The ARA has imported 253,000 b/d of gasoil this month, down from the 304,000 b/d imported in February, according to Vortexa data. Kuwait has sent around 47% of the cargo volumes, and volumes have also arrived from Saudi Arabia (21%) and the US (14%).

Availability is normal in Hamburg, and buyers are requested to enquire well in advance of delivery, a trader said.

Bunker availability remains tight in Sweden’s Gothenburg and off Denmark’s Skaw, and buyers are advised to enquire about stems with lead times of around 10 days at both locations, a trader told ENGINE.

Mediterranean

Bunker fuel prices remain high in the Gibraltar Strait for another week. Availability is tight for prompt supplies, with one supplier quoting its earliest delivery date seven days out, a trader told ENGINE.

Demand is strong in Gibraltar. Around 75 vessels expected to call for bunkers there between 18-27 March, according to shipping agent A. Mateos & Sons.

High swells are affecting bunkering in Algeciras, port agent MH Bland said. Ships calling for bunkers there are facing slight congestion at the inner anchorage, while operations are proceeding normally at the outer anchorage and by the outer port limits.

In Las Palmas, strong weather has led all bunker operations to be cancelled at the outer anchorage, MH Bland said. Bunkering is taking place at the inner anchorage and at berth, but with longer waiting times.

Availability remains tight in the Canary Islands bunkering hub, with recommended lead times for HSFO supplies increasing to around 15 days. VLSFO and LSMGO deliveries still need around 10 days of notice, a trader said.

Fuel availability remains normal in Portugal’s Lisbon, with around 3-5 days of lead time recommended for all fuel types, a source told ENGINE.

Rough winds and high swells from opposite directions have suspended bunker operations off Malta, shipping agent WMR told ENGINE. Operations could remain suspended until Thursday afternoon, the shipping agent added.

This suspension is likely to increase supply backlogs and increase bunkering delays, a trader said.

Fuel availability remains normal in Istanbul, with VLSFO, ULSFO and LSMGO supplies available promptly, a local supplier said.

Africa

Fuel availability remains tight off Namibia’s Walvis Bay and in the Togolese port of Lome, and suppliers are quiet on lead times, a trader said.

Demand is strong in West African ports as buyers are increasingly sailing around Africa to avoid the Red Sea route.

In Luanda’s Angola, VLSFO remains unavailable and replenishments are expected by early April, a supplier said. LSMGO availability is very tight, the supplier added.

In Nigeria’s Lagos, VLSFO availability is normal, but buyers are requested to enquire with around five days of lead time, a local supplier said.

In South African ports, a supplier said it can deliver HSFO in April at the earliest, while VLSFO can be delivered within 2-4 days.

In Mauritius’ Port Louis, suppliers are seeing strong demand as buyers are increasingly looking for volumes in the port due to the Middle East conflict, a trader said. This is reflected in steeper prices, with HSFO at around $1,300/mt in the port, and VLSFO at $1,600/mt.

By Nachiket Tekawade

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