Americas Fuel Availability Outlook 1 Oct

Bunker demand healthy in Houston

Bunkering delays expected in New York

HSFO now available in Brazil

IMAGE: Aerial view of container shipping port at Salvador, Brazil. Getty Images

North America

Bunker fuel demand in Houston is healthy, with all three conventional grades available within 4–8 days.

"Demand is steady and the market is normal. Availability is in good shape and we're seeing very few tight spots," a bunker trader said.

With the onset of the winter season in the upcoming months, a ship agent noted that terminal operators in Houston should also consider the potential impact of extended fog-related closures in the months ahead.

In the Galveston Offshore Lightering Area (GOLA), HSFO and LSMGO can be delivered within 3–4 days, while VLSFO has required around five days over the past week. The shortest delivery window at the anchorage for LSMGO is 1–2 days.

No tropical cyclones are present in the Atlantic, and the National Hurricane Center does not expect any to form over the next seven days.

The National Hurricane Center currently has issued advisories for Hurricane Rachel and Tropical Depression Nineteen-E in the Eastern Pacific, and for Tropical Storm Nolo in the Central Pacific. Marine warnings are additionally also in effect for the Eastern Pacific.

In New York, supply of distillates, the category that covers MGO and LSMGO, is getting tighter, and there are worries about shortages lasting into the fourth quarter and early next year, a source said.

Recommended lead times this week are five days for VLSFO and seven days for HSFO. LSMGO can be supplied within 3-4 days.

New York Harbour closed over the past weekend because of a storm, and traffic is expected to take a few days to clear, a source said. Conditions have since settled, with winds of 5-15 knots and waves of 1-2 feet forecast for the rest of the week.

In Los Angeles and Long Beach, bunkering operations are ongoing normally. Fuel availability at the port is decent, with suppliers recommending lead times of 6-8 days for HSFO and VLSFO. LSMGO can be delivered within 5-7 days, a trader said.

In Canada's Vancouver, HSFO can be supplied by 4–5 October, and VLSFO and LSMGO are available with lead times of 4–8 days.

Latin America and the Caribbean

The Panama bunker fuel market is reporting good availability. All three grades are deliverable within 3-6 days at Balboa and Cristobal, though some tightness is expected for HSFO, a supplier said.

In Colombia, the ports of Cartagena, Santa Marta and Barranquilla have good availability for VLSFO and LSMGO. The earliest delivery date is 3-4 days.

VLSFO avails are normal in Callao, with recommended lead times of 3-7 days.

HSFO and LSMGO are tight this week, and lead times of over a week to 10 days are advised for both grades. HSFO is only available under prior consultation.

VLSFO and LSMGO avails are good across Chilean ports, with recommended lead times of 3-7 days. HSFO is no longer available in the country.

HSFO is also now available in Brazil, at the port of Rio de Janeiro, after Petrobras began selling the grade there earlier this week.

All three grades in Rio de Janeiro are available under prior consultation. VLSFO and LSMGO avails are tight, with recommended lead times of over a week to 10 days.

VLSFO and LSMGO availability is okay at the port of Santos, where suppliers have recommended lead times between 3-7 days. The port remains congested.

Both the grades are however very tight in Paranagua, and are available only under prior consultation. The earliest delivery date for VLSFO and LSMGO stems in Rio Grande is 6 October, a source said.

At the ports of Belem and Vila do Conde, recommended lead times for VLSFO and LSMGO are between 3-7 days this week.

In Argentina's Zona Comun, availability is very tight for both the grades this week and supply is available only under prior consultation, a source said. Weather conditions at the anchorage are rough and operations are expected to be suspended if wind gusts reach over 20 knots.

By Gautamee Hazarika

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