North America
Bunker fuel demand has been good in Houston, and availability for all grades has been tight for prompt delivery dates. Several suppliers can offer VLSFO and LSMGO stems with a lead time of at least seven days.
High wind gusts and an Arctic Front has caused major delays to bunker operations in the port lately.
The US fog season around the Gulf of Mexico has also reduced visibility around other ports and bunker locations, including Corpus Christi, Freeport, Galveston, Port Arthur, Lake Charles and the New Orleans Outer Anchorage (NOLA).
Fog conditions in the region depend heavily on wind directions. Southerly winds from the Gulf typically result in fog in the Houston area, while colder, northerly winds can keep visibility clearer.
Last week, severely rough weather conditions forced the Houston Ship Channel to close. The channel is a vital waterway for ports in Houston, Galveston, Baytown and Texas City. It often faces closures during the US Gulf Coast's winter season, which runs until March.
Pilot services in the Sabine Pass were suspended on Thursday morning due to dense fog. Bunker operations may be suspended due to heavy rainfall and “possibly a thunderstorm,” a source says. “Some of the storms could be severe,” the source adds.
Bunker deliveries in the Galveston Offshore Lightering Area (GOLA) are currently underway, although delays are expected this week. Operations may face further disruptions through 1 February due to high wind gusts, a source says.
Suppliers in New York can offer VLSFO and LSMGO for prompt deliveries, a source says. However, bunker operations at the East Coast port may face some delays until 2 February due to high wind gusts.
On the West Coast, Los Angeles and Long Beach have seen improved availability across all fuel grades, with suppliers recommending lead times of less than seven days.
Caribbean and Latin America
HSFO has been on the tight side in Balboa, and especially in Cristobal, where there are relatively fewer barges. A supplier in Cristobal can only deliver with 10 days of lead time, while another can offer for nine days out in Balboa.
Prompt VLSFO availability is tight at Argentina's Zona Comun anchorage, where a recent bout of high winds delayed barge reloadings and bunker deliveries. Seven days of lead time is advised. Strong wind gusts forecast this week may suspend deliveries until Friday. The delays could be severe, a trader says.
Petrobras now offers B24-VLSFO in Brazil's Rio Grande after it obtained ISCC EU certification for its oil terminal in the port.
Source: ENGINE