Fuel supply systems in North America, especially in Houston, are witnessing steady demand for marine fuels. While access to HSFO (High Sulfur Fuel Oil) and LSMGO (Low Sulfur Marine Gas Oil) is reported to be normal, some suppliers are facing difficulties in providing VLSFO (Very Low Sulfur Fuel Oil).
Weather Conditions and Their Impact on Fuel Supply
The U.S. Gulf Coast has entered the marine fog season, and heavy fog may cause delays and disruptions in port activities. Yesterday, the U.S. Coast Guard warned that intermittent fog could reduce visibility in the Houston ship channel and Galveston Bay, especially in the early morning hours. This week, the Port of Mobile is facing the highest risk of marine fog, with visibility expected to drop to one nautical mile or less on Thursday and Friday.
Fuel Supply Status in Various Ports
In the Galveston area, at the Galveston loading area (GOLA), access to fuel is somewhat challenging, and all three types of fuel are available with a delivery time of 5 to 7 days. Fuel delivery in GOLA is done on a "first come, first served" basis and depends on weather conditions. It is expected that on Saturday, strong winds of 23 knots and waves up to 1.1 meters will be present in this area.
Despite high demand for fuel in New York, access to all three types of regular fuel is reported to be good, and no severe bottlenecks are observed. The proposed delivery time for VLSFO and LSMGO is between 2 to 4 days, and for HSFO, it is about 5 days. It is expected that the supply of distillate fuels, which includes LSMGO, will tighten at the Port of New York by the end of the year and continue into early next year.
In the Ports of Los Angeles and Long Beach, there is strong demand for fuels. Although HSFO, VLSFO, and LSMGO are priced higher compared to Houston and New York, the demand for these fuels remains steady. In recent months, VLSFO in Los Angeles has averaged $294 per ton more than in Houston. This price difference for HSFO has also increased from $62 to $304 per ton.
In Vancouver, Canada, fuel demand is steady, and all three types of fuel are available with a delivery time of 4 to 8 days. In Panama, access to VLSFO and LSMGO is good, but HSFO faces challenges and typically requires a delivery time of more than one week to 10 days.
