North America

Hurricane Ernesto, which formed earlier this week, intensified into a Category 1 storm on Wednesday, with wind speeds reaching 80 miles/hour by nightfall, according to the National Weather Service (NWS). The storm is projected to strengthen further by Friday.

In response to the storm, ports in Puerto Rico and the US Virgin Islands have been closed since Tuesday. The US Coast Guard implemented “port condition Zulu” on Tuesday evening, effectively suspending all port operations. This status is enacted when gale-force winds are expected within 12 hours.

Puerto Rico and the US Virgin Islands are both located in the Caribbean Sea and have around 11 seaports, with the largest being the Port of San Juan.

The NWS also noted that Ernesto is not anticipated to make landfall on the US mainland.

Bunker fuel demand has been very slow in Houston this week and availability of all fuel grades has been good for prompt dates. Most suppliers can offer VLSFO and LSMGO stems with a lead time of 5-7 days in Houston.

VLSFO and LSMGO availability has also been good for prompt dates in Bolivar Roads. Deliveries there remain subject to weather conditions and anchorage schedules, a source says.

Bunkering was proceeding normally in the Galveston Offshore Lightering Area (GOLA) on Thursday amid good weather conditions. The weather is forecast to remain calm over the weekend and most of next week. Despite conducive weather conditions, bunker demand in GOLA has been very low this week.

The port of Seattle on the West Coast has experienced a notable surge in demand this week.

Securing stems for very prompt dates is difficult at the moment, a source says. A lead time of at least 7-8 days is recommended in Seattle. HSFO availability has improved in Los Angeles this week. Suppliers are now able to offer the grade within five days of lead time.

Prompt VLSFO and LSMGO are available in the East Coast port of New York. Demand has picked up in the port since Wednesday, a source mentions.

Caribbean and Latin America
Bunker fuel demand has been good in Panama’s Balboa and Cristobal. Product availability is also good in both locations, with several suppliers able to supply all fuel grades with a lead time of 5-7 days
The port of St. Eustatius in the Caribbean is experiencing severe gale-force wind gusts of 39 knots, making bunker deliveries difficult there.

Bunker operations resumed in Zona Comun on Wednesday after being suspended for almost six days because of bad weather conditions. VLSFO and LSMGO availability remains tight for prompt dates at Argentina’s Zona Comun anchorage.

One bunker supplier in Rio de Janeiro has significantly lowered their prices in response to the new operations at the Sepetiba outer port limit (OPL), a source says. Last week, Bunker One announced that it will supply VLSFO and LSMGO in Sepetiba OPL, which is located in the Sepetiba Bay area, southwest of Rio de Janeiro and north of Santos.

Bunker fuel availability has been normal in the Brazilian port of Santos. Several suppliers can offer VLSFO and LSMGO stems with a lead time of 3-4 days in the port.
Source: By Debarati Bhattacharjee, ENGINE