VLSFO and LSMGO stems can be procured at short notice in ARA and other Northern European ports like Skaw and Hamburg,
ARA’s independent inventories of fuel oil added 5% last week and reached their highest levels since records began, according to Insights Global data. A total of 11.37 million bbls fuel oil is now stored in ARA, the most since at least 2005, when Insights Global started gauging the inventories weekly.
Fuel oil exports to the east have waned with fewer arbitrage opportunities to Singapore in March, leaving more fuel oil stored in ARA.
ARA’s gasoil inventories were drawn again this week, declining by 4% to 17.62 million bbls.
Stocks of distillates and other refined products fell on the week. European refineries struggle with thin margins amid low transport fuel demand as several countries including France and Germany have re-entered lockdowns.
Prompt VLSFO and LSMGO deliveries are also in good availability in the Gibraltar Strait ports, in ports further east in the Mediterranean like Piraeus, Istanbul and Malta, and in the Russian Black Sea port of Novorossiysk.
HSFO380 availability has tightened further in the Canary Islands. Availability of HSFO380 has been more limited since mid-January, when one supplier ran low on product and not been resupplied since. Another supplier has also seen lower availability recently, as it also awaits resupply. Suppliers still offer the grade, but volumes are scarcer.
Gibraltar and Algeciras have more available supplies and generally a couple of days shorter lead times required for HSFO380 stems than in Las Palmas and Tenerife.
South African ports continue to have limited HSFO180 volumes to supply, while VLSFO and LSMGO can be sourced with shorter lead times. Port Elizabeth is typically significantly higher-priced than Durban, but has priced the two low sulphur grades within a $10/mt premium of Durban in the past week.
Source: ENGINE (https://engine.online/)