Europe & Africa Fuel Availability Outlook 25 Feb

Prompt supplies remain tight in ARA

Supplies tight in Las Palmas ahead of rough weather

VLSFO and LSMGO availability tight in Angola’s Luanda

IMAGE: Cargo vessel in the Port of Las Palmas, Canary Islands. Getty Images

Northwest Europe

Securing prompt supplies of VLSFO and LSMGO fuel grades in the ARA hub remains difficult, with buyers usually recommended to book stems 5-7 days ahead to avoid high premiums, a trader told ENGINE. HSFO deliveries can be carried out comparatively faster with a notice of 2-3 days sufficient.

The ARA region has imported 220,000 b/d of fuel oil in February so far, rising slightly from the 215,000 b/d imported in January, according to cargo tracker Vortexa. Shipments have arrived from Nigeria (15%), France, Venezuela and Lithuania (13%).

The region’s independent gasoil inventories - which include diesel and heating oil – rose 5% in February so far, compared to last month, according to the Insights Global data.

The ARA imported 273,000 b/d of gasoil in February so far, significantly more than the 206,000 b/d imported in January, according to Vortexa data. Saudi Arabia (21%), Kuwait (16%) and the U.S. (15%) have been the biggest contributors.

Ships choosing to bunker at Germany’s Hamburg port can easily procure any fuel grade with a notice of 2-3 days, a trader said.

Fuel availability remains tight in Sweden’s Gothenburg and off Denmark’s Skaw, and lead times of at least 10 days are advised at both locations, a trader told ENGINE.

Mediterranean

Demand remains strong in Gibraltar, with around 44 vessels expected to call for bunkers between 25 February – 4 March, according to shipping agent A Mateos & Sons.

Availability of all marine fuels remains tight for prompt dates in Gibraltar, Algeciras and Ceuta, with buyers advised lead times of 8-10 days for VLSFO and HSFO stems and 5-7 days for LSMGO stems, a trader told ENGINE.

Some suppliers in Gibraltar could be delayed by anywhere between 2-12 hours, port agent MH Bland said.  A few suppliers in neighbouring Algeciras could be running around 12 hours late on deliveries, while some suppliers were running as much as three days behind schedule, the port agent added.

Bunker availability in Spain’s Barcelona also remains tight for prompt supplies, a trader said.

At the Canary Islands' bunkering hub of Las Palmas, availability of all fuel grades is very tight, with buyers advised to book stems at least 10 days ahead to avoid high premiums, a trader told ENGINE.

Rough winds of more than 25 knots and high swells of between 2-4 metres are forecast in the area between 26-28 February, which could cause suspensions of operations.

In the Portuguese port of Lisbon, bunker availability remains stable and three days of notice is sufficient to get deliveries, a source told ENGINE.

Off Malta, some suppliers are able to deliver LSMGO by end of the week, while others can deliver by around 3-4 March, a trader said. VLSFO supplies are available promptly, the trader added.

In Greece’s Piraeus, VLSFO has limited offer capacity, a source told ENGINE. HSFO fuel availability is also tight in the port, while LSMGO supplies are normal, a trader added.

VLSFO availability is tight in Istanbul, while ULSFO and LSMGO are available more readily, a local supplier told ENGINE. One supplier at the Turkish port can deliver VLSFO by 27 February, a trader added.

Africa

VLSFO and LSMGO bunker availability is tight for prompt supplies in Togo’s Lome and off Namibia’s Walvis Bay, a trader said. HSFO supplies in these locations still remain tight, the trader added.

In Nigeria’s Lagos, VLSFO and LSMGO supplies are stable and can be delivered within 5-7 days, a supplier said.

In Angola’s Luanda, deliveries of VLSFO and LSMGO are tight and can be delivered in around 6-10 days, a supplier said.

In South Africa’s Durban and Richards Bay, availability is normal for VLSFO and HSFO, with 2-4 days of notice sufficient to secure deliveries of both grades, a trader said.

At Port Louis in Mauritius, fuel availability remains very tight, and buyers are recommended lead time of around 10-15 days to arrange deliveries of any fuel grade, a trader said.

By Nachiket Tekawade

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