North America

Demand for all fuel grades has remained good in Houston this week. Availability of VLSFO and LSMGO for prompt dates is normal in the port, with lead times of 3-4 days advised. A few suppliers are also able to offer HSFO stems for prompt delivery dates there.

LSMGO and VLSFO prices have shot up in Houston partly due to the high cost of replenishment cargoes, a source says. It is likely that bunker fuel blenders’ access to fuel oil supply has been limited as a result of an increase in summer demand from the power sector.

The US fuel oil supply, or implied demand increased by a massive 64% in July, from an average of 169,000 b/d in June to nearly 277,000 b/d in July, according to data from the Energy Information Administration (EIA).

VLSFO and LSMGO availability is normal in Beaumont. One supplier is able to offer both fuel grades with a lead time of three days. Demand has been low in Bolivar Roads this week. Availability is normal for prompt delivery dates.

Availability of VLSFO and LSMGO is normal for prompt dates in the Galveston Offshore Lightering Area (GOLA), a source says. Most suppliers can deliver HSFO stems with a longer lead time of 5-7 days. The offshore area is forecast to experience favourable weather conditions through this week, which would allow smooth bunker deliveries there.

Most suppliers can offer VLSFO for prompt dates at the New Orleans Outer Anchorage (NOLA) with a recommended lead time of 3-5 days. Availability of LSMGO can be tight there, but prompt deliveries are possible on a subject to enquiry basis.

LSMGO prices in the West Coast ports of Long Beach and Los Angeles have spiked this week. However, a few suppliers are able to offer the fuel grade within seven days in the ports. VLSFO can be available with a shorter lead time of 5-6 days due to low demand in the ports.

Demand for VLSFO and LSMGO in the East Coast port of New York has improved for prompt dates this week. Availability is also good, and most suppliers are able to deliver stems with a lead time of 3-4 days. For HSFO, there has been more demand for delivery dates further out.

Caribbean and Latin America

Some suppliers in Panama’s Balboa port can supply VLSFO and LSMGO for very prompt delivery dates. One supplier is able to deliver stems for both fuel grades immediately. HSFO stems can also be secured with a longer lead time of 6-7 days. In Cristobal, one supplier can deliver VLSFO and LSMGO stems with a lead time of three days.

Prompt availability of VLSFO and LSMGO remains normal off Trinidad.

VLSFO and LSMGO demand has picked up for delivery dates further out in Jamaica’s Kingston. Most suppliers are able to offer these stems.

Bunker operations have been running smoothly at Zona Comun anchorage in Argentina. Calmer weather is forecast over the weekend. However, strong winds of up to 28 knots are again expected to hit the region from Monday onwards, which could delay bunkering or trigger a suspension there. Some suppliers are not quoting for prompt stems as they fear potential delays in barge product loadings and deliveries over the next week, a source says.

Currently, few suppliers can deliver VLSFO and LSMGO stems in Zona Comun with a lead time of 6-7 days.

Prompt availability of VLSFO remains tight in Brazilian ports. One supplier requires at least eight days of lead time to deliver VLSFO stems in Brazil’s Paranagua. Demand for VLSFO and LSMGO stems has been low in other Brazilian ports like Rio Grande, Rio de Janeiro and Santos.

Source: Engine