Europe & Africa Fuel Availability Outlook 11 March

Bunker premiums remain high as Iran conflict drags on

Pilot strike planned in Antwerp

Earliest delivery dates for suppliers in Africa starting end of March

IMAGE: The Europoort area in the Port of Rotterdam. Getty Images

Northwest Europe

Prices have continued to be volatile in the ARA hub this week, as the conflict in the Middle East drags on into the second week.

Demand is reported to be very high in ARA with one supplier requesting buyers to enquire “as soon as possible” to reserve availability, a supplier said.

Suppliers tend to increase premiums when they have fuel availability, a trader said.

One supplier in Antwerp can deliver VLSFO earliest by 23 March, the trader added. Another supplier said it can deliver all fuel grades promptly in ARA.

The ARA’s independently held fuel oil stocks have slumped 17% in March so far, according to Insights Global data.

At 5.37 million bbls, the region’s fuel oil stocks are at their lowest average since January 2022. The region has imported around 8,000 b/d of fuel oil so far in March, a sharp drop from the 192,000 b/d imported in February, according to cargo tracker Vortexa. All of the March supplies have come from France.

The region’s independent gasoil inventories - which include diesel and heating oil – have fallen by 50,000 in March so far, compared to February.

The ARA imported 269,000 b/d of gasoil in March so far, down from the 304,000 b/d imported in February, according to Vortexa data. Kuwait has sent more than half of the shipments (52%), while the U.K. (22%) and the U.S. (21%) have also contributed.

Additionally, pilots in Belgian ports have planned a strike between 11-13 March, during which most vessel movements will not be possible, shipping agent VertomCory Antwerp said.

In Hamburg, fuel availability now varies by fuel grade, quantity and delivery date, a trader said.

Fuel availability is tight in Sweden’s Gothenburg and off Denmark’s Skaw, and buyers are advised to book with a notice of at least 10 days at both locations, a trader told ENGINE.

Mediterranean

Bunker premiums remain high at the ports in the Gibraltar Strait. Bunker availability is tight for prompt supplies, a trader said.

Around 51 vessels are expected to call at Gibraltar for bunkers, according to shipping agent A Mateos & Sons.

Some suppliers in Gibraltar can be delayed by around 1-2 days, according to port agent MH Bland. In neighbouring Algeciras, some suppliers are running between 12-36 hours late on deliveries, the port agent added.

In Ceuta, deliveries by barge can be delayed by around 15-20 hours, MH Bland said.

In Spain’s Valencia and Sagunto, LSMGO supplies are available on a prompt basis, according to a supplier.

In Portugal's Lisbon, a notice of 3-5 days is required for any fuel delivery, a source said.

Off Malta, bunker availability is tight for prompt dates, and suppliers are quoting earliest delivery dates between 18-21 March, a trader said.

Fuel availability is normal in Greece’s Piraeus, a source said. Demand has been really high in the recent days and HSFO and LSMGO supply is expected to tighten due to lack of barge availability, as most suppliers are overbooked, the source added.  

In Istanbul, fuel availability is prompt for VLSFO, LSMGO and ULSFO grades, a local supplier said.

Africa

Off Nambia’s Walvis Bay, fuel demand is healthy and most suppliers are selling fast, a local supplier said. VLSFO and LSMGO stems can be delivered earliest by around end of March, the supplier added.

In Angola’s Luanda, VLSFO supplies are very tight, and replenishments are expected by end of March, a supplier said. LSMGO availability is also tight for prompt dates, and the supplier said it usually requests a notice of 7-10 days.

In Nigeria’s Lagos, fuel availability is tight for prompt dates, and a notice of at least a week is expected for VLSFO deliveries, a supplier said.

In South African ports, VLSFO deliveries can be delivered earliest by 24 March, while HSFO supplies are tight until April, according to a supplier.

By Nachiket Tekawade

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