ENGINE: Americas Bunker Fuel Availability Outlook
Prompt supply of all grades is back on offer in New York. A supplier can deliver in 5-7 days. Several others can deliver VLSFO and LSMGO grades with 2-3 days of lead time.
New York’s LSMGO price has come off against Houston and other major Americas ports this week.
Prompt deliveries of VLSFO and LSMGO are available in the Houston area, including Bolivar Roads, and offshore in locations like the Galveston Offshore Lightering Area (GOLA).
LSMGO is tight with certain suppliers in Corpus Christi, with one’s earliest delivery date five days out.
US fuel oil stocks jumped 4% higher to eight-month highs last week, with gains across regions. Refiners have been ramping up run rates in recent months. East Coast and Gulf Coast refineries ran up to 95% of utilisation capacity last week, yielding more fuel oil as a result.
US importers have targeted Mexican and Middle Eastern fuel oil volumes to replace embargoed Russian product.
In addition to higher total refinery production, refiners have been looking to maximise gasoline and distillate production amid surging prices and a pick-up in demand. East Coast distillate stocks regained some weight last week after slumping to multi-year lows earlier this month. The sub-region where New York and New Jersey are located saw a slight 0.5% uptick.
Central America and Caribbean
VLSFO and LSMGO availability has improved some in Panama after weeks of tightness. HSFO can be tight with some suppliers. Two suppliers can deliver with 5-7 days of lead time.
A supplier has run out of VLSFO to offer off Trinidad, pushing its earliest delivery date back to late May as it needs to reload product. LSMGO is more readily available. Another supplier can deliver in 6-7 days off Trinidad or in port, but has pockets of unavailability until early June after that.
Low sulphur grades are tight for prompt dates in Ecuador’s Guayaquil, where a supplier’s earliest delivery date is 6-9 days out.
Colombia’s Cartagena has also had tight supply of VLSFO and LSMGO amid a lack of access to blend stocks, sources say.
Tropical Cyclone Yakecan hit the ports of Rio Grande and Paranagua on Tuesday, forcing them shut. Winds blew up to 35 knots in Rio Grande and brought heavy swells, according to shipping agent Orion. Pilot services and most port operations were also halted.
Winds have since calmed, but seas remain choppy in the two southern Brazilian bunker ports. The earliest dates for delivery are around 4-5 days out.
Strong winds hit Zona Comun and forced a halt to bunker operations for about 13 hours from Tuesday evening to yesterday morning. Calmer winds allowed bunkering to resume. Availability is tight with certain suppliers that require around 11 days of lead time. Others can deliver in 5-6 days.
The earliest delivery date is slightly further away, at six days, in nearby Bahia Blanca.
Source: ENGINE (https://engine.online/)