Slow demand in Houston and GOLA

Supply very tight in Zona Comun

LSMGO availability is tight in Brazilian ports

PHOTO: Afternoon aerial view of the ports of Long Beach and Los Angeles in southern California, US. Getty Images

North America

Houston has experienced a drop in bunker demand this week after robust demand last week. Availability of VLSFO and LSMGO has been good, and some suppliers can deliver both grades within 3-5 days. Prompt HSFO supply is also possible now with a new supplier entering HSFO bunker market in the region. Lead times of 4-5 days are recommended for the grade.

Demand has picked up in Beaumont and Nederland this week, leading to a rise in bunker fuel prices in both locations.

Securing VLSFO and LSMGO stems for prompt delivery dates remains difficult in Bolivar Roads. Bunker deliveries there are subject to weather conditions and availability of anchorage space, a source says.

Bunker operations have been running smoothly in the Galveston Offshore Lightering Area (GOLA) amid calm weather conditions this week. Most suppliers are able to deliver VLSFO and LSMGO stems within 4-5 days of lead time, while some can offer both grades on a subject to enquiry basis. However, demand has been very low for all fuel grades in GOLA this week.

At the New Orleans Outer Anchorage (NOLA), VLSFO and LSMGO can be secured for very prompt (0-3 days) dates.

Demand has been low in the West Coast ports of Long Beach and Los Angeles this week. Availability of all grades is better than normal, with lead times of around 5-7 days. Meanwhile, availability is very tight in Seattle further up the North American west coast, with only one supplier offering VLSFO and LSMGO currently there.

In the East Coast port of New York, all grades are available for prompt delivery dates.

Caribbean and Latin America

VLSFO and LSMGO demand has been normal in Panama's Balboa port this week. Product availability is good with several suppliers able to supply both fuel grades with a lead time of 4-5 days. Demand for HSFO has been relatively muted in Balboa and Cristobal, and prompt supply is readily available in both ports.

VLSFO and LSMGO stems are available for prompt dates in Jamaica's Kingston. A supplier can deliver VLSFO and LSMGO stems with a lead time of 3-4 days.

Bunkering in Argentina's Zona Comun anchorage resumed on Thursday morning after being suspended since Monday. But strong wind gusts of up to 34 knots are forecast to hit the region from Friday onwards, which could cause prolonged delays and disruptions through the rest of the week, a source says.

Due to persistent weather disruptions and a refinery outage in the region, the availability of fuel grades in Zona Comun has become extremely tight. One supplier is running out of VLSFO and LSMGO stocks, while several other suppliers are only able to offer stems for delivery dates after the first week of October.

Availability of LSMGO has been very tight in the Brazilian ports of Rio de Janeiro and Santos. VLSFO can be secured for prompt dates with most suppliers in the ports.

By Debarati Bhattacharjee

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