US Gulf Coast spot bunkers markets will be monitoring the port of New Orleans this week in the wake of Hurricane Ida marking landfall, with expectations for re-opening mixed among local players.
“Think we won’t see much demand today as people get their bearings and decide what to do with their ships post-hurricane,” a Houston supplier said. “Hearing it may be two days until we see NOLA reopen for vessel movements. Everyone just waiting for updates.”
Category 4 Hurricane Ida ravaged much of southern Louisiana and Mississippi on Aug. 29, leaving well more than 1 million electricity customers without power for the foreseeable future.
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In advance of the storm, about 95% of the US Gulf’s oil and gas production was shut-in, and roughly 2.2 million b/d of oil refining capacity was closed, S&P Global Platts Analytics data showed.
Retail bunkers sources in Southeastern US ports, such as Charleston and Savannah, were not seeing any residual impact stemming from the Port of New Orleans closing, but some were preparing for that dynamic to change.
“No impact at this time,” a source said. “I guess it could possible slow us down some, however I don’t see any issues.”
On the bulk marine fuel side, much of the market sentiment throughout the trading day was one of uncertainty.
The ongoing power outages and damage to infrastructure was unknown.
One source said that a survey of damages would likely take up to three days and believed that operations would take at least seven days before resuming.
A second source said that outside of news of refineries that shut down due to power outages, there has been a lack of information and updates on terminals and tanks.
Retail 0.5%S marine fuel spot pricing in Houston rose $3 on the day Aug. 30 to price at $505/mt ex-wharf, taking direction from the USGC bulk 0.5%S segment, which saw value rise $6.50/mt.
MGO spot pricing in Houston rose $1 to $595/mt ex-wharf Aug. 30, with a supplier indication heard at that level.
New Orleans spot prices tracked Houston to be assessed at $515/mt ex-wharf on 0.5%S and $600/mt ex-wharf on MGO.
Source: Platts