A resupply crunch after a storm has propped up Vancouver’s bunker prices, and US refiners have ramped up fuel production to meet strong demand, reports Engine.
Fuel availability in Vancouver
Fuel availability is limited in Vancouver, with only one in two suppliers offering fuels after a storm crippled resupply infrastructure two weekends ago. Supply issues could persist for some time as a key pipeline supplying the port city with oil remains offline.
Pipeline operator to restart
Pipeline operator Trans Mountain has 350 working to restart a key pipeline supplying Vancouver with crude and oil products from Alberta, Canada’s main oil-producing province. It is in the process of carrying out ground inspections and hopes to restart the pipeline shortly as no major damage has been found.
Vancouver’s bunker prices
Supply constraints have supported Vancouver’s bunker prices. Its LSMGO premium over Los Angeles has widened to more than $50/mt, while its VLSFO premium has surged above $80/mt.
US residual fuel oil inventories
US residual fuel oil inventories fell further last week and hover around two-year lows following a period of strong demand and fewer imports, figures from the Energy Information Administration (EIA) show.
Fuel oil volumes supplied to refineries, blenders and bulk terminals across the US averaged 452,000 b/d so far in November, a 33% rise from October.
Producers have responded by ramping up fuel oil production massively. US refineries produced a two-year high of 321,000 b/d of fuel oil last week. Gulf Coast refiners produced 135,000 b/d of fuel oil, the most since June 2020. West Coast refiners produced 100,000 b/d, a 64% bump from the previous week.
Bunkering in Brazil’s Rio Grande
Swells and strong winds could disrupt bunkering in Brazil’s Rio Grande from Thursday evening and into the weekend. Delays are expected, sources say.
Steady VLSFO supply
VLSFO supply remains steady in Rio Grande and Paranagua, while Rio de Janeiro and Sao Sebastiao further up Brazil’s coast have more limited availability for prompt dates. Their earliest expected delivery dates now stretch a week into December.
VLSFO can also be tight for prompt dates in some Caribbean ports. The earliest expected delivery date in Freeport, Bahamas is five days out. The grade is in limited supply in Willemstad, Curacao, where a resupply cargo is set to arrive on 27 November from St. Eustatius, according to cargo tracking.
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Source: Engine
