Houston VLSFO price dips

Vancouver bunker demand steady

LSMGO not available in Paranaguá

IMAGE: Harbor of San Cristobal in the Galapagos, Ecuador. Getty Images

North America

In Houston, demand for conventional bunker fuels has been reported to be weak across all three grades. The port can supply HSFO within recommended lead times of around seven days, while VLSFO and LSMGO can be delivered within 3–5 days.

In particular, demand for VLSFO has slumped further, and prices for the grade at the port are currently cheaper.

A source informed ENGINE that VLSFO premiums have fallen amid weaker demand, with the port’s current Hi5 spread at only $32/mt today.

In terms of weather, cooler air has moved into the Houston area, bringing increased winds offshore and around the Bolivar Roads, though no extreme conditions or significant delays are expected through 26 October.

Availability remains good at Galveston Offshore Lightering Area (GOLA), where several suppliers can offer HSFO and LSMGO with lead times of 3–4 days. VLSFO can be delivered in around 5–6 days.

In New Orleans, Louisiana (NOLA), all three fuel grades are available, with a notice of 6–7 days recommended amid steady demand. HSFO and VLSFO can be delivered in under five days.

The recommended maximum draft for vessels loading in NOLA is 50 feet.

In New York, bunker fuel demand remains steady for HSFO and VLSFO, while offtake for LSMGO is reported to be lower.

The port has a steady supply of fuels this week, with HSFO requiring around seven days of notice, VLSFO around four days, and LSMGO available within 1–2 days.

Calm to moderate conditions are expected at the New York Harbor through the weekend, with westerly winds of 10–15 knots on Thursday easing to light northerlies below 10 knots by Sunday.

Waves will remain around 1–2 feet, keeping conditions conducive for bunkering operations.

Bunker fuel demand at the ports of Los Angeles and Long Beach remains steady, with LSMGO and VLSFO available for prompt delivery within 3–5 days. HSFO is also accessible, typically requiring lead times of 5–7 days.

Additionally, the ports are exploring alternative marine fuels, including methanol, through pilot projects aimed at enhancing sustainability in bunkering practices.

Across the US fuel oil production, imports and supply have all declined in October so far, according to data from the Energy Information Administration (EIA).

While production declined by 12%, averaging less fuel oil per day in October compared with September, overall supply has fallen more sharply, dropping from 289,000 b/d last month to 175,000 b/d so far this month.

In Canada's Vancouver, bunker demand is reported to be normal, with suppliers recommending 3-4 days of lead time for VLSFO and LSMGO.

Latin America and the Caribbean

The Panama market is experiencing weakened demand.

At key ports such as Balboa and Cristobal, HSFO and VLSFO are available within lead times of 5–6 days, while LSMGO can be supplied within 3–4 days.

In Ecuador, VLSFO is readily available for prompt delivery, with lead times of 4–5 days. HSFO and LSMGO are also supplied at the port, with delivery possible within five days or less, according to a source.

HSFO is heavily discounted here compared to many neighboring ports, as Ecuador benefits from high production of residual fuel oil and abundant supply of this grade.

In Columbia, ports of Cartagena, Santa Marta and Barranquilla report to have good stock of VLSFO and LSMGO. The earliest delivery date is three days.

In Brazil, the port of Santos is facing high congestion as usual. VLSFO supply is tight at the port, and currently special pricing is applied for quantities exceeding 1,500 tons.

LSMGO is also available, but supply remains constrained at limited levels. Recommended lead times for delivery are around 6–7 days.

Rio de Janeiro shows very tight availability for both VLSFO and LSMGO with earliest deliveries expected around 25 October.

At OPL Sepetiba, both VLSFO and LSMGO remain subject to enquiry, with reloads anticipated by 31 October.

Salvador also shows limited availability for VLSFO and LSMGO, with earliest deliveries around 27 October, subject to enquiry.

In Paranaguá, VLSFO is available within 5-7 days of lead time, but LSMGO is currently not available at the port.

Rio Grande reports normal availability for VLSFO and LSMGO, with recommended lead times of under five days. At Belém/Vila do Conde, also have normal availability, with lead times recommended within a week.

In Itaqui, both the grades remain steady, with earliest deliveries expected by 28 October.

In Argentina’s Zona Comun, VLSFO and LSMGO are readily available and can be delivered via barges, with 4–5 barges currently in operation. Suppliers are recommending lead times of 5–6 days this week.

Weather conditions at the anchorage are currently normal but are expected to deteriorate early tomorrow, with high winds of 22–25 knots causing elevated seas, making bunkering at the anchorage unfeasible.

Rough conditions, including strong wind gusts and rain thunderstorms, are forecast from 24–28 October.

By Gautamee Hazarika

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