US Gulf Coast ports are well supplied amid a ramp-up in production, and availability has improved with incoming cargoes in Panama’s main ports.
Supply of all bunker fuel grades remains steady in the Houston area, with no major shortages.
US Gulf Coast residual fuel oil inventories grew considerably amid higher imports and production last week, the latest Energy Information Administration (EIA) data shows. The inventories had been declining into October, following hurricane disruptions and a whole week without any fuel oil produced in mid-September.
Gulf Coast refineries produced 65% more fuel oil than the week before. At 86,000 b/d, the region’s weekly fuel oil production surged to its highest level since April.
HSFO380 can be tight for prompt dates in the Galveston Offshore Lightering Area (GOLA) and at the New Orleans Outer Anchorage (NOLA). A supplier in NOLA is unable to accommodate near dates, while another supplier is.
Strong winds and high waves are forecast in GOLA until Saturday, and could delay deliveries.
The US West Coast remains heavily congested with container ships amid an influx of import containers to ports along the coast. Over 70 container ships have been anchored near the twin ports of Los Angeles and Long Beach in recent days. Waiting times for container ships arriving to unload cargo and to bunker can extend to two weeks.
Suppliers in Panama’s Cristobal have replenished stocks after running low earlier this month. Several low sulphur fuel oil cargoes have arrived in Cristobal and nearby storage terminals along Panama’s Caribbean coast from the US in the past week, according to vessel tracking.
Availability has been relatively better in Balboa, although also tightening with increased demand while Cristobal has been less of an option. Some suppliers can accommodate prompt stems in Balboa. Their earliest delivery dates range from 2-11 days out.
Zona Comun’s VLSFO price has dropped down to discounts to Paranagua and Rio Grande. All three locations can accommodate prompt VLSFO stems. Around four days of lead time is recommended for stems in Paranagua.
Source: ENGINE (https://engine.online/)