Europe & Africa Fuel Availability Outlook 18 Feb

Tight prompt VLSFO and LSMGO supplies in ARA

Operations back to normal in Gibraltar as weather improves

VLSFO and LSMGO availability improves in Lome

IMAGE: Aerial view of the Bay of Gibraltar. Getty Images

Northwest Europe

Getting immediate deliveries of VLSFO and LSMGO is challenging at ARA, with buyers advised around 5-7 days of lead times to avoid higher premiums, while HSFO supplies are available more promptly with a notice of around 2-3 days, a trader told ENGINE.

The ARA’s independently held fuel oil stocks have dipped 3% in February till date compared to January, according to Insights Global data.

The region has imported 214,000 b/d of fuel oil in February so far, almost at par with 215,000 b/d imported in January, according to cargo tracker Vortexa. Most cargoes this month have arrived from Nigeria (24%), Lithuania (21%) and the U.S. (15%).

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

The ARA imported 270,000 b/d of gasoil in February so far, more than the 206,000 b/d imported in January, according to Vortexa data. The U.S. (24%), Saudi Arabia (22%) and Qatar (20%) have been the biggest contributors.

In Germany’s Hamburg, bunkering any fuel grade is possible with a short notice of around 3-5 days, a trader said.

Bunker availability is tight in Sweden’s Gothenburg and off Denmark’s Skaw, with recommended lead times of around 10 days for all fuel grades, a trader told ENGINE.

Mediterranean

Weather has improved across the Gibraltar Strait this week. All port operations at Gibraltar, Algeciras and Ceuta are proceeding normally, port agent MH bland said.

In Gibraltar, congestion caused due to the weeks long disruption has now cleared, and all suppliers are now operating without delays, the port agent said.

Demand looks strong in the port this week. Around 62 vessels are expected to call for bunkers between 18-25 February, according to shipping agent A Mateos & Sons.

LSMGO lead times have improved to around 5-7 days, compared to last week's 8-10 days. But HSFO and VLSFO supplies still require around 8-10 days of notice, a trader said.

Fuel availability remains tight in Las Palmas, with some suppliers able to deliver any fuel grade earliest by around 23-25 February, with one supplier unable to deliver before 26-27 February, a trader told ENGINE.

In Portugal’s Lisbon, any fuel can be bunkered with a notice of around 3-5 days, a source told ENGINE.

Fuel availability is very tight off Malta due to weather-related disruptions causing loading issues at some terminals, a trader said.

VLSFO offer capacity remains limited at Greece’s Piraeus, a source told ENGINE.

Availability is normal in Istanbul, and all fuel grades are available promptly, a trader said.

Africa

VLSFO and LSMGO bunker availability is tight for prompt supplies in Togo’s Lome, a trader said.

In Nigeria’s Lagos, VLSFO supplies are available within five days, a local supplier said.

One supplier said deliveries of VLSFO and LSMGO in Angola’s Luanda anchorage is possible on a prompt basis.

VLSFO and LSMGO supply is slowly improving off Namibia’s Walvis Bay, and one supplier can deliver LSMGO by around 20 February, a trader 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 tight and a lead time of around two weeks is recommended for deliveries of VLSFO, HSFO and LSMGO, a trader said.

By Nachiket Tekawade

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