Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO availability tight in the ARA and Gibraltar; Gibraltar’s Hi5 spread shrinks to just $12/mt; LSMGO availability tight in South African ports.

Published

12 months ago

September 14, 2023

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:

HSFO availability tight in the ARA and Gibraltar
Gibraltar’s Hi5 spread shrinks to just $12/mt
LSMGO availability tight in South African ports

Northwest Europe

HSFO availability has tightened in Rotterdam and in the wider ARA hub again, sources say. Lead times of 5-6 days are recommended for the grade, while some suggest longer lead times of more than seven days to ensure full coverage from suppliers there.

Rotterdam’s HSFO price has come up from levels of $550/mt seen at the beginning of the month, to nearly $590/mt as of Wednesday. The price spike has largely been due to a recent resurgence in Brent values. However, some traders argue that HSFO prices have strengthened relative to other grades in the ARA and several other European bunker hubs after OPEC+’s key member Saudi Arabia announced it will extend its production cuts through to the end of the year.

Saudi Arabia, which mostly produces sour crude, has been implementing production cuts to stabilise Brent prices. Less access to sour crude has contributed to tighten HSFO supply further in the ARA and in major bunker ports in Europe.

Rotterdam’s HSFO price has surged by $160/mt since June, while its VLSFO price has increased by $115/mt. The price moves have significantly narrowed the port’s Hi5 spread, from $78/mt in June to just $32/mt now. A trader claims that some refineries in the ARA hub have been diverting more distillates to VLSFO blending, which has propped up supply and capped further price gains in Rotterdam.

ICE Gasoil futures remain in steep backwardation, with $37/mt between the front- and second-month contracts on Wednesday. A backwardated forward structure is usually a sign of fewer incentives to store products.

VLSFO and LSMGO availability is said to be normal in the ARA hub. Lead times of 4-6 days are recommended for VLSFO, and 1-3 days for LSMGO. However, product loading delays at oil terminals still persist in the ARA, two sources say.

VLSFO and LSMGO availability remains normal for delivery off Skaw. Recommended lead times for both grades are around 7-10 days.

Mediterranean

HSFO availability has tightened a bit in Gibraltar, a source says. Lead times of 4-6 days are recommended for the grade. Some traders have been quoting HSFO at steep price levels. The grade was trading unusually high at around $625/mt on Wednesday, to keep the port’s Hi5 spread at just $12/mt.

VLSFO and LSMGO availability is said to be normal across Gibraltar Strait ports. Lead times of 3-5 days are recommended for both grades.

Availability is also good for VLSFO and LSMGO in Las Palmas. A supplier can supply both grades with lead times of five days.

VLSFO and LSMGO availability is good in the Portuguese ports of Lisbon and Sines.

Meanwhile, prompt availability of VLSFO and LSMGO is tight in other bunker delivery locations in the Mediterranean such as off Malta, Piraeus and Istanbul. Some suppliers can deliver stems for prompt dates in these locations, but deliveries are subject to firm enquiries, a source says.

Africa

LSMGO availability remains tight across the South African ports of Durban, Cape Town and Richards Bay. VLSFO availability is relatively better and lead times of up to seven days are recommended for the grade.

Bunkering was progressing normally in Algoa Bay on Wednesday, according to Rennies Ships Agency. However, strong wind gusts of up to 40 knots and heavy swells are forecast to hit the bay in periods between Thursday and Sunday, which could complicate deliveries there. 19 vessels are due to arrive for bunkers in Port Elizabeth and Algoa Bay over the course of the rest of the week, Rennies says.

VLSFO and LSMGO availability is good in Mozambique’s Nacala and Maputo ports, a source says. HSFO is almost out of stock in Nacala, where a replenishment cargo is only expected to arrive after 28 September.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 14 September, 2023

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Bunker Fuel

ENGINE: Western Australian ports to face bunker shortage as barge dry docks

Bunker barge operating in ports of Fremantle and Kwinana will be in dry dock from early September to mid-November, making VLSFO and LSMGO unavailable by barge at these ports during this period.

Published

1 day ago

September 9, 2024

Admin

A bunker barge operating in the Western Australian ports of Fremantle and Kwinana will be in dry dock from early September to mid-November, making VLSFO and LSMGO unavailable by barge at these ports during this period, a source says.

The bunker barge Absolute 1 is the sole operating barge in this region, according to data from fuel labs that ENGINE has access to.

Although VLSFO will not be available at these ports, LSMGO can be supplied at berth, the source notes.

By Tuhin Roy

Source: ENGINE
Photo credit: MarineTraffic / Graeme Waller
Published: 9 September, 2024

Bunker Fuel Availability

Baltic Exchange: Bunker Report (5 September 2024)

Bunker report panellists include Island Oil Limited, Cockett Marine Oil Pte, Monjasa A/S and KPI OceanConnect.

Published

4 days ago

September 6, 2024

Admin

Baltic Exchange: Bunker Report (5 September 2024)

The following bunker report has been provided by freight market information provider Baltic Exchange for post on Singapore bunkering publication Manifold Times:

Note:

All values are in US$/metric ton, all-in (invoice price), delivered on board
Delivery in 7-10 days
ISO 8217:2010
IFO 380 3.5% Sulphur
IFO 380 0.5% Sulphur
DMA 0.1% Sulphur

Rotterdam – Waalhaven – Maasvlakte range
Houston – Houston Harbor
Singapore – Anchorage, under SBA Scheme
Fujairah – Offshore Anchorage Area

Submitted weekly at Close of Business UK time, on Tuesday & Thursdays

Panellists:
Island Oil Limited, Cockett Marine Oil Pte, Monjasa A/S, KPI OceanConnect

Photo credit and source: Baltic Exchange
Published: 6 September, 2024

Bunker Fuel

ENGINE: Americas Bunker Fuel Availability Outlook (5 Sep 2024)

Availability is tight in West Coast ports; rough weather disrupts GOLA bunkering; VLSFO is trading lower in Vila do Conde and Rio de Janeiro compared to Santos’.

Published

4 days ago

September 6, 2024

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:

Availability is tight in West Coast port
Rough weather disrupts GOLA bunkering
VLSFO is trading lower in Vila do Conde and Rio de Janeiro compared to Santos'

North Americas

Bunker demand was slow in the early part of this week in Houston and several other locations along the US Gulf Coast, but picked up slightly as the week progressed, a source said.

Availability of all fuel grades has been good for prompt dates. Most suppliers can offer VLSFO and LSMGO stems with a lead time of five days in Houston. Prompt HSFO supply is tight and lead times of 7-8 days are recommended for the grade.

Prompt supply of VLSFO and LSMGO is also available in Bolivar Roads and Beaumont. However, bunker deliveries in both locations are subject to weather conditions and the availability of anchorage space, a source says.

Bunkering operations in the Galveston Offshore Lightering Area (GOLA) were suspended on Thursday due to wind gusts of 28 knots. A brief window of calmer weather later in the day may allow bunkering to resume temporarily before conditions worsen again by Friday evening. Wind speeds are forecast to increase further and touch 43 knots by Saturday.

Suppliers in GOLA have faced intermittent bunkering suspension since Tuesday due to unstable weather conditions.

At the New Orleans Outer Anchorage (NOLA), there has been good demand for VLSFO and LSMGO for non-prompt delivery dates, and most suppliers are comfortable to offer stems for these dates.

All grades are tight for prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. Most suppliers require more than seven days of lead time to deliver VLSFO and LSMGO stems in the ports. Securing HSFO can be even more difficult, as only a few suppliers offer the grade.

In the East Coast port of New York, all grades are available for prompt delivery dates.

Caribbean and Latin America

Bunker fuel demand has been good in Panama's Balboa and Cristobal. Product availability is also good in both locations, with several suppliers able to supply all fuel grades with a lead time of 3-5 days in Balboa, and a slightly longer lead time of about 6-7 days in Cristobal.

VLSFO and LSMGO can be delivered promptly in Jamaica’s Kingston. HSFO can be secured on a subject to enquiry basis, a source says.

Bunker operations were running normally in Zona Comun on Thursday morning. However, rough weather conditions are forecast from Friday onwards and may impact barge deliveries.

Two weeks ago, Zona Comun was trading at a rare premium over Santos due to tight delivery schedules caused by weather-related disruptions. These disruptions caused delays and reduced the availability of bunkering services in the area, driving prices up.

However, with refinery supply now steady and demand below average, suppliers in Zona Comun have been able to deliver more promptly. This has improved buyers' choice and availability and contributed to lowering prices. With weather-related disruptions again, availability could tighten again.

Bunker fuel availability has been normal in the Brazilian port of Santos. Several suppliers can offer VLSFO and LSMGO stems with a lead time of 3-4 days in the port.

A supplier in Brazil has lowered its VLSFO prices in the ports of Vila do Conde and Rio de Janeiro to below its Santos level, which is typically the country's cheapest port to bunker. This pricing strategy is putting pressure on competitors, who are struggling to compete with the lower prices, sources say.

By Debarati Bhattacharjee

Photo credit and source: Baltic Exchange
Published: 6 September, 2024