ENGINE: Americas Bunker Fuel Availability Outlook
• Limited HSFO supply in US West Coast ports
• All grades tight in New York, Vancouver and Panama
• Potential weather disruption in Argentina
A supplier in the Houston area has tight availability for delivery of all grades 1-2 weeks ahead. Other suppliers can deliver prompt and prices have kept at discounts to other major regional ports.
All grades have been in tight supply in New York, especially LSMGO which has traded at wide premiums over other regional ports.
HSFO supply has been squeezed in US West Coast ports. A supplier in Long Beach is unable to offer the grade as it struggles to get hold of resupply.
Strike action at the Richmond refinery near San Francisco has put pressure on the region’s production capacity. The refinery is scheduled for a six-week crude distillation unit (CDU) maintenance from 15 June, according to Wood Mackenzie. This could continue to take some production capacity out of the market and keep supply tight.
There has also been limited fuel oil and gasoil available in Vancouver.
All grades are tight with a supplier in Panama, while other can deliver prompt depending on enquiries. The supplier expects to have no availability in Balboa for at least two weeks.
HSFO has been particularly tight in Panama lately. Two suppliers in Balboa have no estimates of their earliest HSFO delivery dates, while two others can deliver with 7-8 days of lead time.
VLSFO can also be tight in Balboa. A supplier’s earliest delivery date is nine days out.
Panama’s bunker sales fell by 12% on the month in May, to a three-month low of 421,000 mt, preliminary figures from the Panama Maritime Authority show. 48 fewer ships bunkered in Panama than in April and sales were down across VLSFO, HSFO and LSMGO grades.
Two bunker barges were taken out of operation in Balboa last month, and one added in Cristobal, bringing the total barge count across Panama to 31 – a one-year low.
LSMGO is tight in Trinidad. A supplier is running low on product until replenishment cargo arrives. Other suppliers can deliver the grade with 7-10 days of lead time.
VLSFO is more readily available with certain suppliers in Trinidad. One supplier can deliver the grade with two days of lead time. Another has a busy delivery schedule and looks more towards dates at the end of the month as its earliest.
Prompt availability is tight in Zona Comun, with recommended lead times of 5-7 days. Strong winds are forecast on Friday and could disrupt delivery schedules.
Source: ENGINE (https://engine.online/)