Prompt bunker availability tight in major regional ports
• US fuel oil stocks fall further below five-year average
• New barging surcharges come into effect
Several suppliers are unable to commit to prompt HSFO380, VLSFO and LSMGO deliveries in Houston. The earliest delivery dates for VLSFO and LSMGO in the Houston area range between 7-11 days ahead, depending on the supplier.

New barging surcharges of 22% have come into effect in New York and several other US East Coast ports this week. They did not previously have any surcharges.

Bunker availability is tight with several suppliers in US West Coast ports. A supplier’s earliest delivery date for VLSFO in Los Angeles is 12 days out due to a busy barge schedule.

HSFO380 continues to be tight along the North American west coast. Only one supplier is offering the grade in each of Vancouver, San Francisco and Los Angeles now, sources say.

Stocks of residual fuel oil held in the US fell last week amid a big supply increase, according to the Energy Information Administration (EIA).

Volumes supplied to refiners, blenders and bulk terminals more than doubled on the week, reaching four-week highs.

US refinery production of fuel oil rose by a third on the week, with the biggest gains seen on the West Coast. The increase came as US refineries’ utilisation rates rose above 90% for the first time in seven months.

Fuel oil imports picked up slightly. Russia dropped down to second place among top import sources, behind Mexico, according to Vortexa. But significant cargo volumes continued to arrive in Philadelphia and US Gulf Coast ports from the Russian Black Sea and Baltic Sea.

A significant number of Russian fuel oil cargoes are in transit and expected to arrive in US Gulf Coast ports in the second half of March and early April, but no new purchases have been allowed after US lawmakers slapped sanctions on Russian oil last week.

US importers have 45 days to complete deliveries of cargoes purchased before the embargo came into effect, so Russian oil is still likely to flow to US ports well into April.

Prompt supply of VLSFO and LSMGO is also tight in Panama, where suppliers’ earliest delivery dates range between 6-9 days out. It might be possible to fit smaller stems into supplier schedules before then, depending on quantity and specific delivery dates.

Prompt supply is tight in Zona Comun, with certain suppliers’ earliest delivery dates 8-10 days out.
Source: ENGINE (https://engine.online/)