HSFO demand picks up in Houston

Bad weather disrupts Zona Comun bunkering

Availability is tight in US West Coast ports

PHOTO: Oil refinery with a view to downtown Houston. Getty Images

North America

Demand for HSFO has seen a slight increase in Houston this week, with suppliers able to deliver stems within a lead time of 5-6 days.

In contrast, demand for VLSFO and LSMGO has been relatively lower. Most suppliers can meet requests for these grades with a shorter lead time of 3-5 days.

Prompt supply of VLSFO and LSMGO is also available in Bolivar Roads and Beaumont. However, bunker deliveries in both locations are subject to weather conditions and the availability of anchorage space, a source says.

Bunkering has been proceeding normally in the Galveston Offshore Lightering Area (GOLA) this week. The weather is forecast to be calm over the weekend and most of next week. Demand has been steady there and securing prompt VLSFO and LSMGO stems are also possible, a source says.

All grades are tight for prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. Most suppliers require more than seven days of lead time to deliver VLSFO and LSMGO stems in both ports.

Much less demand has been observed in the East Coast port of New York, where most suppliers are willing to offer stems for very prompt dates. However, strong winds of up to 32 knots are forecast from Friday onwards, which could delay bunkering or trigger a suspension there.

Demand has risen in the East Coast ports of Canada like Montreal and Halifax this week. The uptick in demand has pushed bunker prices higher in both ports, a source says.

Caribbean and Latin America

Bunker demand has been good in Panamanian ports amid more daily transits through the Panama Canal. Availability has also remained good for prompt dates in both Balboa and Cristobal.

Bunkering was suspended in Argentina's Zona Comun anchorage on Thursday due to adverse weather conditions. The area was experiencing strong wind gusts of up to 32 knots, making barge deliveries difficult there.

Rough weather conditions are expected to continue on Friday and through the weekend, potentially causing prolonged delays in the anchorage, a source said. Intermittent weather disruptions are also possible next week.

Demand has stayed low in the Brazilian ports this week.

By Debarati Bhattacharjee

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