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:

21 June 2023 

• HSFO supply tight in ARA and Gibraltar Strait
• Low sulphur supply normal in Ceuta, Las Palmas
• Bad weather disrupts bunkering in Algoa Bay

Northwest Europe

Securing prompt delivery of HSFO grade can be difficult in Rotterdam and in the wider ARA hub. Tight availability of the product has pushed Rotterdam’s HSFO price higher in recent weeks. The grade’s price has shot up by around $60/mt since 1 June, and flipped to a rare premium over Gibraltar.

Lead times of minimum 5-7 days are now recommended for HSFO bunker deliveries in the ARA, a source says. Suppliers are not offering stems for prompt dates there as several are running low on stocks, the source adds.

Multiple factors have contributed to the recent HSFO tightness in the ARA, according to various sources. A lack of access to banned Russian fuel oil imports, and crude oil to feed refineries, has rendered the ARA less resilient to supply shocks.

Since the EU banned crude imports from Russia, EU refineries have been shifting to sweet and sour grades from the US and other alternative sources. The recent Kurdish crude export suspension has prevented around 450,000 b/d of sour crude from reaching refineries in the EU and other destinations.

Shell’s 404,000 b/d Pernis refinery – Europe’s biggest – was offline for a three-month maintenance that was scheduled to end by late May. But a leak forced Shell to shut down two crude distillation units (CDUs) last week, Argus Media reported. Shell has been working to restart one of the CDUs that is “operating as normal” in recent days.

A recent draw of the ARA’s fuel oil stocks has added to the supply pressure in the bunkering hub. The ARA’s independently held fuel oil stocks averaged 11% lower in the first three weeks of this month, and dropped to their lowest monthly average since March, according to Insights Global data.

VLSFO requires around 5-6 days for full coverage from suppliers in the ARA.

Availability of LSMGO is better than for HSFO and VLSFO, with lead times of 3-4 days advised.

Supply of VLSFO and LSMGO is normal for delivery off Skaw, while HSFO is said to be relatively tighter. Lead times of up to seven days are advised for VLSFO and LSMGO. HSFO requires up to 10 days for delivery there, a source says.

Bunker fuel availability is normal in the German ports of Hamburg and Bremerhaven, with recommended lead times of five days. Meanwhile, bunker demand is said to be weak in both ports, a source says.

Mediterranean

VLSFO and LSMGO availability remains normal in Gibraltar and Algeciras, requiring lead times of around 3-4 days. However, securing very prompt delivery of HSFO can be difficult there. Lead times of 5-7 days are generally recommended to ensure full coverage from all suppliers in the region.

Minimum congestion was reported in Gibraltar, Algeciras, Ceuta and Malta on Wednesday, according to port agent MH Bland. Strong winds gusts of up to 26 knots are forecast to hit Gibraltar Bay in periods between Friday and Saturday, which could cause some delays.

Bunker operations are running normally in Las Palmas. Bunker fuel supply is normal there and in Ceuta. Lead times of up to five days are recommended for VLSFO and LSMGO deliveries in Ceuta.

Bunker demand has been weak in Malta so far this week, while availability is normal for all the main fuel grades, a source says.

In the Greek port of Piraeus, supply of HSFO and LSMGO is said to be normal for prompt dates, while VLSFO is currently tight. VLSFO supply is likely to improve by the end of this week, when replenishment stocks are expected to arrive, a source says.

Africa

Bunkering has been suspended in Algoa Bay since Monday due to bad weather conditions. Two vessels were waiting to receive bunkers at anchorage on Wednesday morning, according to Rennies Ships Agency. 20 vessels are scheduled to arrive for bunkers in Algoa Bay and Port Elizabeth in the remaining days of the week, it says. Heavy swells of up to 3.5 metres are forecast to continue until Friday morning, which could cause further delays and disruptions.

Meanwhile, bunker fuel supply is said to be normal in Durban and other South African ports. Lead times of up to seven days are advised for VLSFO and LSMGO deliveries in Durban, a source says.

Bunkering is progressing normally in Mozambique’s Nacala and Maputo ports amid conducive weather conditions, a source says. Bunker supply is said to be normal in both locations. A total of seven vessels are scheduled to arrive for bunkers across the ports this week, the source adds.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 22 June, 2023