ENGINE: Americas Bunker Fuel Availability Outlook

Bunker fuel oil supply has not been affected by the ransomware attack and six-day shutdown of Colonial Pipeline’s network, and there is good availability of fuels across ports in the Americas this week.

US Gulf Coast fuel oil inventories were drawn last week and fell to five-week lows. The region’s fuel oil storage tanks are thinly stocked for the time of year, but supply to bunker ports has been steady and there are few shortages.

Availability of HSFO380 and LSMGO has tightened at the Offshore US Gulf Coast anchorage. Other locations along the Gulf Coast mostly have prompt volumes ready to supply.

A bunker barge is set to resume deliveries at the Galveston Fairway anchorage from next week, after being drydocked since March. The barge will only carry LSMGO, having previously also carried VLSFO.

East Coast inventories grew by 13%, but continue to be low for the time of year. Bunker supply is steady in New York Harbor. Fuel oil supply to the port and to other East Coast ports has not been impacted by the Colonial Pipeline shutdown, which has only halted flows of other transport fuel and heating oil.

US West Coast stocks were also drawn last week, but their stock position continues to be towards the higher end of their seasonal average. Los Angeles, Long Beach and San Francisco have readily available volumes of all fuel grades.

Availability has tightened in Vancouver across grades. The ports VLSFO price discount to Seattle has narrowed to less than $5/mt now, coming from a discount of around $20/mt for most of April.

VLSFO is tight with certain suppliers in Panama’s Cristobal. Better availability is expected from next week. Balboa has larger supply capacity and more readily available supplies of the grade.
Source: ENGINE (https://engine.online/)