ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Northwest Europe's bunker fuel supply is limited in ARA ports, prompting buyers to seek suppliers with lead times of 5-7 days. Suppliers are also experiencing loading difficulties with certain fuel grades. B100 demand is rising in Rotterdam, with a notable increase in B100 bunker samples recorded in Rotterdam between January and August compared to the same period last year.

The ARA's fuel oil stocks have risen by 47% since May, but are still 18% below February levels before the Middle East conflict commenced. In September, the ARA hub imported around 276,000 b/d of fuel oil, down from its August monthly average of 342,000 b/d. Most shipments in September originated from Mexico (23%), Colombia (19%), and Benin (14%).

Gasoil inventories in the region have increased by 2% in September compared to August, with most shipments arriving from the US (30%), the UK (18%), and Sweden (12%). In Hamburg, buyers should allow five days' notice for any fuel grade, while Denmark's Skaw has normal VLSFO availability, but a tighter HSFO supply. Mediterranean ports face tight fuel availability, particularly in the Gibraltar Strait, where buyers should anticipate lead times of 7-10 days for any fuel grade.

In Algeciras, one supplier may be delayed by more than a day for HSFO deliveries, while other suppliers in the Spanish port may face delays of 6-12 hours. Ceuta's barge deliveries are delayed by 8-10 hours, while ex-pipe deliveries proceed as scheduled. Barcelona requires a week's notice for deliveries of any fuel grade. In Lisbon, fuel availability remains stable with lead times of 3-5 days.

Las Palmas has tight fuel availability, with lead times of 7-8 days recommended. Mediterranean fuel availability is tight in the Gibraltar Strait, with buyers advised to lead times of 7-10 days. Africa experiences tight fuel availability in Lome, Lagos, Angola's Luanda, Namibia's Walvis Bay, South Africa's Durban, and Cape Town.

In South Africa, Richards Bay and Algoa Bay offer comparatively better fuel availability, requiring longer lead times of 10-15 days for deliveries. In Mozambique, VLSFO and LSMGO are normal in Nacala, while HSFO is tighter in Maputo. In conclusion, bunker fuel availability varies across Europe and Africa, with some ports experiencing tight supplies and others maintaining stable inventories. Buyers are advised to plan accordingly, considering lead times and available fuel grades.