Key Houston terminal shifts to single supplier

Bunker demand declines in New York

Petrobras implements quantity pricing in Santos

IMAGE: Aerial view of Houston Ship Channel. Port of Houston

North America

Bunker fuel demand has dropped in Houston this week, while availability has improved.

"Avails are honestly looking much better than in the past few weeks," a source said.

Both VLSFO and HSFO can be delivered within lead times of 3-5 days, while LSMGO is more readily available and can be delivered under three days.

The Enterprise Houston crude and refined products is now supplying bunkers exclusively sold through a single supplier, market sources say.

It supplies marine fuels including LSMGO and VLSFO via ex-pipe, and HSFO by barge.

"Permission for bunkering alongside has shifted from Enterprise to the supplier directly…so it's safe to assume that any barge not tied to them will be rejected at this terminal," a bunker trader said.

Alternative bunker options in the region include Bolivar Roads and the Galveston Offshore Lightering Area (GOLA).

The hurricane season is underway in the US Gulf Coast region, which will run through to the end of November.

"It’s important to note that any storm hitting GOLA will impact bunker operations at both Bolivar Roads and the Port of Houston," a source said.

For now, conditions are forecast to be favourable to bunkering off both GOLA and Corpus Christi.

Bunker demand has weakened in New York, while availability of bunker fuels remains decent. All fuel grades can be delivered within recommended lead times of 4-5 days.

"Overall demand has been down this week, but the past couple of weeks were very busy so it had to even out at some point," a market source said.

No significant weather disruptions or congestion are expected in New York this week.

The twin ports of Los Angeles and Long Beach have also recorded a decrease in overall bunker demand this week.

“Fuel availability is a tad bit tight compared to east coast, and suppliers require at least seven days to make deliveries,” a source said.

Los Angeles has recorded an 11% decline in cargo import volumes this week compared to last week.

In Montreal, barge operations are restricted to daylight hours, and anchorage deliveries can be delayed by bunker barge readiness issues.

Latin America and the Caribbean

Panama's bunker market has improved and demand has picked up compared to previous weeks. Availability is decent in the ports of Balboa and Cristobal, a source confirmed.

VLSFO and LSMGO can be delivered with lead times ranging between 4-5 days, and HSFO in four days.

The Panama Canal is now operating at full capacity following severe and extended drought conditions that began in 2023. Canal authorities are maintaining a 50-foot draft through the dry season.

For the key Colombian ports of Cartagena, Santa Marta and Barranquilla, a bunker broker said, "Fuel availability is good. We can deliver VLSFO at $545/mt and LSMGO at $665/mt within three days."

Bunker demand in Brazil remains steady, with prompt availability of VLSFO and LSMGO at Rio Grande and Rio de Janeiro, where lead times range between 3–5 days.

In Santos, congestion continues to be a regular issue, and supply is tighter with suppliers advising lead times of at least seven days in advance.

Petrobras has introduced additional discounts on stems over 1,500 mt that are supplied in Santos from 10 July, saying it wants to incentivise larger volumes and improve logistics.

Argentina is currently working on ramping up crude export infrastructure. Yacimientos Petrolíferos Fiscales (YPF)’s Punta Colorado terminal is expected to have 7 million bbls of crude storage and 550,000 b/d supply capacity, Antares Ship Agents informed.

Crude will load via two offshore buoy moorings, with a pipeline from Vaca Muerta also under construction. The terminal is expected online by mid-2027.

Operations at another anchorage on the Paraná Guazú River called KM 171, a key transshipment point for diesel imports into Paraguay, will continue for another 10 months.

Argentina's Customs had planned to shut it from 1 August over authorisation issues, but reversed the decision after Paraguay protested.

Further south, availability is normal in Zona Comun with recommended lead times of 5-6 days for both VLSFO and LSMGO.

The anchorage is expected to experience periods of dense fog between 13-14 July, which may disrupt bunkering and cause temporary suspensions.

Deliveries here are subject to weather conditions and follow a first-come, first-served system.

By Gautamee Hazarika

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