- Prompt availability remains tight in major US ports
- US fuel oil stocks bounce off all-time lows
- VLSFO supply tight in Brazil
Bunker availability
Several suppliers have tight bunker availability for prompt dates across key US ports like New York, Los Angeles and bunker locations around the Houston area.
US fuel oil inventories fell to all-time lows towards the end of last year. End-of-year destocking combined with strong pre-holiday bunker demand to draw stocks and tighten supply bunker hubs.
East Coast inventories slumped to record lows, according to figures from the Energy Information Administration (EIA). This has been reflected in New York’s bunker market, where fuel oils tightened in the second half of December, especially HSFO380.
Suppliers
But East Coast and Gulf Coast inventories regained some weight in the final week of 2021 amid a sharp drop in volumes supplied to bulk terminals, blenders and refineries.
Some suppliers are running low on LSMGO in the Houston area, leading to potential split-ups of combined fuel oil-Gasoil stems. Prompt delivery slots of VLSFO and HSFO380 are also tight.
The supply came under strain in Panama towards the end of December but has now shown signs of easing and Balboa’s VLSFO price come down against Houston’s to near parity.
South American locations have also seen supply squeezed.
Brazil’s Rio de Janeiro, Paranagua and the Rio Grande have limited VLSFO availability towards the middle of the month. Large VLSFO stems have been unavailable in the Rio Grande.
Certain suppliers in Montevideo expect VLSFO to remain tight through January and into February.
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Source: Engine
