• NY avails tight, West Coast slightly better
• Supply boost from US fuel oil storage
• Prompt product available in Zona Comun
Suppliers in New York and Philadelphia have tight LSMGO availability amid high middle distillate demand beyond bunkering. Some expect supply to improve with replenishment arriving in the second half of the month. A backwardated forward structure has disincentivised inventory builds. Recent high prices have dented demand some, sources say.
Fuel availability has improved slightly in US West Coast ports this week, a source says. Lead times of around eight days for VLSFO is workable with a supplier in Long Beach.
US residual fuel oil inventories have shed weight amid sizeable draws in the East Coast and Gulf Coast regions, the latest Energy Information Administration (EIA) data showed this week. Large fuel oil volumes were supplied out of storage to blenders and bulk terminals and for further refining or power generation. Supply levels hit a 10-week high, and a large share of this fuel oil will eventually find its way to US and foreign bunker ports.
The country’s fuel oil production ticked further up in the week. Total refinery utilisation rates have kept above 90% for five weeks, yielding more residual fuel oil as a by-product. Higher production has helped build US stock levels to their highest monthly average so far in April since October last year.
More fuel oil has also been pulled into the US from abroad. Import levels hit four-month highs in the latest week, with Russia still being the biggest source, according to Vortexa data.
VLSFO and LSMGO supply is tight with several suppliers in Trinidad locations, either as a result of tight barge schedules or in wait of resupply cargoes. One supplier’s earliest delivery date is more than two weeks out.
VLSFO and LSMGO grades are readily available with some suppliers in Zona Comun. Two suppliers’ earliest delivery dates are 3-6 days out.
Prompt VLSFO availability is tight in Brazil’s Paranagua, with the earliest delivery date nine days away.
Supply is limited for near dates in Peru’s Callao. A supplier was out of LSMGO earlier this month. While it awaits resupply its earliest delivery date is estimated to 11-12 days ahead.
Source: ENGINE (https://engine.online/)