Americas Fuel Availability Outlook 10 July
Prompt stems possible in several US Gulf Coast locations
Bunker activity picks up in Houston
Readily available HSFO and LSMGO on the US West Coast
IMAGE: Container ship leaving the Port of Long Beach. Getty Images
North America
Availability is generally good in ports along the US Gulf Coast. There are pockets of tightness, with certain suppliers citing congestion.
Four Houston suppliers can deliver VLSFO and LSMGO with lead times of around a week, and possibly shorter too. Bunker activity picked up in Houston and other US Gulf Coast locations in the middle of this week.
There were six VLSFO offers and one stem fixed on Tuesday, seven offers and two stems on Wednesday and five offers and a stem on Thursday.
LSMGO activity was even greater. Nine offers and two stems were recorded on Tuesday, 12 offers and three stems on Wednesday and five offers and a stem on Thursday.
There was also some HSFO demand, with a stem on Monday, three offers on Wednesday and five offers and a stem on Thursday.
A more active market could be a sign that buyers worry prices could shoot up again if the Strait of Hormuz gets choked off for another extended period. Iran and the US traded blows this week and US President Donald Trump said the ceasefire agreement between the two nations is dead.
All three grades are available for prompt supply in Bolivar Roads. Three suppliers can offer HSFO and LSMGO with a four-day lead time, while two cannot commit to HSFO on that timeline. VLSFO and LSMGO can be supplied with a lead time of around a week by another two suppliers.
VLSFO and LSMGO grades are readily available with three suppliers in New Orleans, two of which can deliver the next day.
Elsewhere on the US Gulf Coast, two Mobile suppliers can deliver VLSFO and LSMGO with a four-day lead time, a supplier in Pascagoula can supply LSMGO in four days and availability of VLSFO and LSMGO looks good with two suppliers offering deliveries in the Galveston Offshore Lightering Area (GOLA) with 7-8 days of lead time.
In Nederland, three suppliers can offer VLSFO a week out while a fourth supplier has a congested schedule then. HSFO and LSMGO can be delivered in 10-12 days in Corpus Christi with one supplier, and also in as short as two days with another supplier.
VLSFO has been harder to come by than LSMGO in Tampa, Florida. A supplier can deliver LSMGO in five days while not VLSFO.
On the US East Coast, LSMGO and VLSFO availability looks decent with two suppliers quoting lead times of 10-14 days, while a third supplier cannot offer. LSMGO can also be fixed with a week-long lead time in Brunswick.
In Canada’s Montreal, LSMGO availability is patchy with one supplier that can deliver in three days, but not 4-5 days. Beyond five days availability prospects are better. LSMGO can be fixed in Vancouver with a lead time of around a week, and possibly on shorter notice too.
HSFO and LSMGO availability is good for dates a week out in San Francisco. In Long Beach and Los Angeles, all three conventional grades are promptly available and a supplier can offer with a lead time of two days.
Latin America and the Caribbean
High wind gusts and rough seas could disrupt bunkering off Trinidad over the weekend.
In Panama’s Balboa, VLSFO and LSMGO grades are in good availability for dates around a week out with one supplier. Another supplier cannot commit to a week out because of congestion, but can slot in a delivery six days out, so availability varies from day to day.
These two fuel grades are also available in Brazil’s Santos, but recent congestion makes it advisable to book stems early.VLSFO is in good availability across Rio de Janeiro, Paranagua, Rio Grande, Belem and Vila do Conde. LSMGO availability can be patchy in Rio de Janeiro and it is currently not available in Paranagua, a source said.
Argentina’s Zona Comun has decent VLSFO and LSMGO availability and no expected weather disruptions coming up in the next few days.
By Erik Hoffmann
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