Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (4 Dec 2024)

Supply improves in the ARA; HSFO tightness has eased in Las Palmas; prompt VLSFO supply is tight in Richards Bay.

Published

1 month ago

December 5, 2024

Admin

The following article regarding Europe and Africa bunker fuel availability has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Supply improves in the ARA
HSFO tightness has eased in Las Palmas
Prompt VLSFO supply is tight in Richards Bay

Northwestern Europe

Supply pressures have eased across all three grades in the ARA this week, a trader told ENGINE. Bunker availability is back to normal and lead times of 3-5 days are advised for all three grades.

The ARA’s independently held fuel oil stocks dipped by 3% in November compared to October, according to Insights Global data.

The region imported 333,000 b/d of fuel oil in November, up from 262,000 b/d imported in October, according to data from cargo tracker Vortexa. The ARA imported low-sulphur fuel oil (LSFO) and HSFO in a 31/69 ratio in November, compared to a 45/55 ratio in October.

Kuwait (14% of the total) emerged as the region’s biggest fuel oil import source last month. The UK, Iraq and France (11% each) ranked second, while Sweden (10%) ranked third. Other import sources include the US (9%).

The ARA hub’s independent gasoil inventories - which include diesel and heating oil - decreased by 2% last month. The region imported 405,000 b/d of gasoil in November, a slight decline from 411,000 b/d of gasoil imported in October, according to Vortexa data.

Prompt bunker availability remains good in Germany’s Hamburg port, a trader told ENGINE. Lead times remain consistent with suppliers able to offer all three grades within 3-5 days.

Mediterranean

Bunker demand has spiked in the port in Gibraltar, according to a source. HSFO and LSMGO supply remains tight for prompt delivery. One trader recommends 5-7 days of lead time for HSFO, while another trader recommends lead times of up to 11 days for the grade. Lead times for LSMGO remain unchanged from last week with traders recommending around 7 days for the grade. VLSFO availability is normal with lead times of 3-5 days advised.

Gibraltar was witnessing adverse weather on Wednesday, with wind gusts of 23 knots in the port area. Five vessels were waiting to receive bunkers in Gibraltar on Wednesday, up from two on Tuesday, a source said. Wind gusts of 22 knots are forecast on Saturday and may complicate deliveries there.

In the Canary Islands’ port of Las Palmas, HSFO supply tightness has eased slightly, but the grade remains tight for prompt supply. Lead times for the grade have come down from last week's 7-10 days to 5-7 days. LSMGO availability remains tight for very prompt delivery dates, with lead times of 5-7 days advised. VLSFO availability is normal, with lead times unchanged at 3-5 days from last week.

Rough weather may trigger bunkering delays in Las Palmas on Wednesday and Thursday, a source said.

All grades remain tight for prompt supply in the Spanish port of Barcelona, a source said. Lead times of 5-7 days are advised for all grades in the port.

Portugal’s Lisbon has good availability across all grades, a trader said.

Bunker demand remains muted in Mediterranean bunker hubs like Piraeus, Malta Offshore and Istanbul, a trader told ENGINE. Availability has tightened in these ports as the year-end approaches.

In Greece’s Piraeus port, availability has tightened across all three grades, a trader said. Lead times of 7-10 days are recommended for all three grades, a source said. Calm weather is forecast in Piraeus for the rest of this week, making it conducive to bunkering.

Off Malta, supply tightness has persisted since last week, a trader said. Lead times of around 7-10 days are advised for all grades, one trader said. Another trader said HSFO and VLSFO require around five days of lead time, while LSMGO is plentiful, with 2-5 days recommended. Bad weather may impact bunkering intermittently from Wednesday and will likely continue into next week, a source said.

Turkey’s Istanbul port is also experiencing tightness across all grades with traders advising lead times of around 7-10 days for full coverage from suppliers.

Africa

VLSFO availability is still tight for prompt delivery dates in South Africa’s Durban and Richards Bay, a trader said. Lead times of 7-10 days are advised by traders for full coverage.

Securing LSMGO stems for prompt deliveries remains a challenge in Durban. Lead times of 7-10 days are recommended for the grade. While demand for LSMGO in Durban remains muted, demand for VLSFO is higher in the port.

Prompt availability is good for all three grades in Mauritius’ Port Louis, a trader said.

Namibia's Walvis Bay has ample bunker supply, according to a source. Lead times of around five days are advised for all three grades. Bunker demand has been strong, particularly for VLSFO and LSMGO. HSFO demand has been relatively less there. Bad weather may trigger bunkering disruptions from Wednesday to Friday, a source said.

By Manjula Nair

Photo credit and source: ENGINE
Published: 5 December, 2024

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LNG Bunkering

ENGINE on LNG Bunker Snapshot: Rotterdam’s price inches up on higher bunker premiums

Rotterdam’s LNG bunker price has risen on higher bunker premiums, while Singapore’s price has been steady amid subdued demand in the broader Asian LNG market.

Published

1 day ago

January 14, 2025

Admin

ENGINE on LNG Bunker Snapshot: Rotterdam’s price inches up on higher bunker premiums

Once a week, bunker intelligence platform ENGINE will publish a snapshot of LNG bunker prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

Rotterdam’s LNG bunker price has risen on higher bunker premiums, while Singapore’s price has been steady amid subdued demand in the broader Asian LNG market.

Changes in weekly LNG bunker prices:

Rotterdam up by $15/mt to $863/mt
Singapore up by $6/mt to $870/mt

Rotterdam

Rotterdam's LNG bunker price has risen by $15/mt over the past week, reaching $863/mt. This increase was mainly driven by a surge in LNG bunker premiums, which more than doubled from around $70/mt to $145/mt during this period.

Cold weather in Europe and high gas withdrawal rates have also added upward pressure on LNG prices. The gas withdrawal rate refers to the speed at which natural gas is extracted from storage to meet demand.

“Cold weather has been driving up heating demand and gas withdrawal rates have been faster than expected. EU storage has now dropped below 70% capacity, which is a bit below average for the time of year and far below the 85% we had heading into 2024,” said Emma Richards, associate director of oil and gas at research firm BMI.

Gas prices were also supported by an outage caused by a compressor failure at Equinor's Hammerfest LNG plant in northern Norway, which processes gas from the Snøhvit natural gas field.

“Snøhvit’s restart date was extended by 10 days to 19 January compared to the initial estimated restart date of 10 January, following a trip on 2 January. This may provide support for prices,” noted energy research firm Rystad Energy.

Meanwhile, the front-month Dutch TTF Natural Gas contract, a key European gas market benchmark, dropped by $1.16/MMBtu ($60/mt) to $13.81/MMBtu ($718/mt) during the same period.

Singapore

Singapore’s LNG bunker price has remained broadly stable in the past week, amid tepid demand in the overall Asian LNG market.

LNG bunker prices in the region are generally linked to NYMEX Japan/Korea Marker (JKM) values. The front-month JKM contract fell by $0.20/MMBtu ($10/mt) to $14.16/MMBtu ($736/mt) during the same period.

“Fundamentals remain weak in Asia with limited purchase interests stemming from China and South Korea, while some buyers such as CPC Corporation, Thailand's PTT, Bangladesh’s RPGCL and northeast Japanese power utility Tohoku Electric were seeking spot LNG for February and March delivery,” Rystad Energy said.

Going forward, Japanese LNG demand could get a boost from planned maintenances at two nuclear power plants in Takahama and Ohi.

“However, buying interests from Japanese importers remain limited as major importers have bought in advance,” Rystad said.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 14 January, 2025

Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (December 2024)

Country sold about 1.59 million mt of bonded bunker fuel in the month, with daily sales at 51,332 mt, a dip of 1.25% from a month earlier, JLC’s data shows.

Published

2 days ago

January 13, 2025

Admin

JLC China Bunker Fuel Market Monthly Report (December 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for December 2024 with Manifold Times through an exclusive arrangement:

China’s daily bonded bunker fuel sales slip in December

China’s daily bonded bunker fuel sales slipped in December, as domestic LSFO supply tightened.

The country sold about 1.59 million mt of bonded bunker fuel in the month, with daily sales at 51,332 mt, a dip of 1.25% from a month earlier, JLC’s data shows. (Note: The volume of China’s November bonded bunker fuel sales has been revised to 1.56 million mt, up from 1.52 million mt stated in the report for November, with Chimubusco’s sales up from 320,000 mt to 360,000 mt.)

Bonded bunker fuel sales by Chimbusco, Sinopec (Zhoushan), SinoBunker and China Changjiang Bunker (Sinopec) settled at 450,000 mt, 500,000 mt, 40,000 mt and 15,000 mt in the month, while those by suppliers with regional bunkering licenses settled at 586,300 mt.

Overall bunkering demand was relatively stable in the month, but domestic refiners continued to cut their LSFO production amid tight quotas, resulting in a decline in daily bonded bunker fuel sales.

China’s bonded bunker fuel exports surge in November

China’s bonded bunker fuel exports surged in November, as bunker suppliers were making efforts to boost sales, also because of more re-export trade activities.

The country exported about 1.82 million mt of bonded bunker fuel in the month, with the daily exports at 60,643 mt, up by 46.57% month on month and 32.97% year on year, JLC calculated, with reference to data from the General Administration of Customs of PRC (GACC).

In breakdown, heavy bunker fuel exports climbed to about 1.71 million mt, accounting for 93.77% of the total exports, while light bunker fuel exports amounted to 113,300 mt, occupying 6.23%.

Despite a further drop in domestic LSFO output, bonded distributors exported more bonded bunker fuel in the month, in a bid to achieve their annual sales targets and lower their inventories. Meanwhile, bonded distributors saw more arrivals of imported LSFO cargoes, and they sold more bonded bunker fuel in the form of re-export trade, which also drove up the exports.

China tallied a total of 18.19 million mt of bonded bunker fuel exports in January-November, with the daily exports at 54,309 mt, inching up by 0.39% from the same months in 2023, JLC estimates, based on the GACC data. Specifically, heavy bunker fuel exports settled at 16.99 million mt in the eleven months, accounting for 93.37% of the total, while light bunker fuel exports settled at 1.21 million mt, making up 6.63%.

JLC China Bunker Fuel Market Monthly Report (December 2024)

Domestic-trade heavy bunker fuel demand strengthens in December

Domestic-trade heavy bunker fuel demand strengthened in December.

Domestic-trade heavy bunker fuel demand amounted to 400,000 mt in December, rising by 20,000 mt or 5.26% month on month, JLC’s data shows.

Shipowners just made purchases to meet rigid demand in the first half of the month when domestic bunker fuel prices rose. However, they engaged in more transactions in the second half as prices retreated and their restocking demand increased amid the approach of the Spring Festival.

On the flip side, domestic light bunker fuel demand dropped to 140,000 mt in the month, down by 10,000 mt or 6.67% from the prior month.

Market sentiment was bearish on diesel demand, attributable to lower operating rates at infrastructure construction and other outdoor projects amid falling temperatures.

Bunker Fuel Supply

China’s bonded bunker fuel imports hit 44-month high

China’s bonded bunker fuel imports soared significantly in November, hitting a 44-month high, as domestic LSFO supply tightened amid insufficient export quotas.

China imported 915,200 mt of bonded bunker fuel in the month, the highest level since March 2021, JLC calculated, with reference to data from the GACC. The imports jumped by 35.50% from the previous month and 70.46% from a year earlier.

Domestic refiners continued to cut their LSFO output as they had run short of export quotas. As a result, bonded dealers had to import more bonded bunker fuel to fill the demand gap. These refiners produced about 466,000 mt of LSFO in November, with the daily output at 15,533 mt, plunging by 38.87% month on month and 41.58% year on year, JLC’s data shows.

While LSFO imports grew, imports of bonded HSFO and MGO were still basically stable in November.

Malaysia was still the largest bonded bunker fuel supplier to China in November, shipping 472,200 mt of bonded bunker fuel to China, which accounted for 51.60% of China’s total imports. Meanwhile, Singapore and South Korea remained in the second and third place with 262,100 mt and 112,000 mt, accounting for 28.64% and 12.23%, respectively. Peru came in fourth with 86,900 mt, occupying 7.53%.

China imported a total of 4.95 million mt of bonded bunker fuel in January-November, skyrocketing by 29.33% from the corresponding months in 2023, versus a rise of 22.61% in January-October.

JLC China Bunker Fuel Market Monthly Report (December 2024)

Blenders raise heavy bunker fuel supply in December

Chinese blenders raised their heavy bunker fuel supply in December, as downstream restocking increased amid the approach of the Chinese New Year holiday, though supply of some blendstock such as shale oil and light coal tar was relatively tight.

These blenders supplied about 430,000 mt of domestic-trade heavy bunker fuel in the month, a boost of 30,000 mt or 7.5% month on month, JLC’s data shows.

On the contrary, domestic-trade light bunker fuel supply tightened amid weaker diesel demand and refineries’ lower operating rates. Domestic-trade MGO supply shrank to 160,000 mt in December, down by 20,000 mt or 11.11% from a month earlier, the data indicates.

JLC China Bunker Fuel Market Monthly Report (December 2024)

BunkerPrices,Profits

JLC China Bunker Fuel Market Monthly Report (December 2024)

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JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

Photo credit: JLC Network Technology
Published: 13 January, 2024

Bunker Fuel Availability

ENGINE: Americas Bunker Fuel Availability Outlook (9 Jan 2025)

Fog season impacting US Gulf Coast bunkering; prompt availability improves in West Coast ports; rough weather causing delays in New York.

Published

5 days ago

January 10, 2025

Admin

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Fog season impacting US Gulf Coast bunkering
Prompt availability improves in West Coast ports
Rough weather causing delays in New York

North America

Bunker fuel availability in Houston remains tight across all grades, according to a source. High winds over the last few days have created some backlogs by delaying bunker deliveries in the port.

Deliveries can remain suspended due to high wind gusts until 10 January, a source said. Suppliers generally require lead times of 7-9 days for VLSFO and LSMGO deliveries in Houston, while HSFO could take more than nine days.

Dense fog and reduced visibility around the Galveston Offshore Lightering Area (GOLA) have disrupted bunker deliveries. “Prolonged delays are expected over the next several days due to high winds [around GOLA],” a source said.

The New Orleans Outer Anchorage (NOLA) also faces fog-related disruptions, similar to GOLA. Fog conditions in the anchorage area depend heavily on wind directions. Southerly winds from the Gulf typically result in fog, while colder, northerly winds keep visibility clear.

On the West Coast, prompt bunker availability has improved in Los Angeles and Long Beach in January, with suppliers recommending lead times of seven days for VLSFO and LSMGO.

On the East Coast, availability for VLSFO and LSMGO is good in New York, but bunkering operations may be suspended this week due to rough weather, causing potential delays, a source said. Standby tugs may be required at certain times, the source added.

High wind gusts could suspend bunker deliveries in Canada’s Montreal.

Caribbean and Latin America

Demand remains strong in the Panamanian ports of Balboa and Cristobal, amid tight availability across all grades. Suppliers require lead times of more than seven days to secure stems.

The Colombian ports of Santa Marta, Barranquilla and Cartagena have seen more demand in recent days, tightening availability. December and January are the months with the highest demand, a source remarked.

Bunker operations at Argentina’s Zona Común anchorage may face some disruptions due to rough weather and strong wind gusts. Prompt VLSFO availability is tight at the anchorage, with lead times of at least seven days advised, a source said.

By Aparupa Mazumder

Photo credit and source: ENGINE
Published: 10 January, 2024