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Mississippi River oil spill impacting New Orleans bunker fuel market: sources
The oil spill in the Lower Mississippi River, resulting from a two-vessel collision Saturday, is impacting bunker fuel prices and loadings as cleanup operations are still in progress, market sources said.
"The New Orleans bunker fuel market has been dealing with tight supplies [and] foggy conditions in recent weeks and the oil spill is making things more difficult," a bunker producer said.
Monday morning the Lower Mississippi River remained closed from mile marker 90 near New Orleans to mile marker 155 near St. James, Louisiana. The affected section of the river reopened with restrictions at about 1:30 pm CST (1930 GMT) Monday.
The closure was due to an oil spill after two vessels collided Saturday, resulting in a barge breach and release of a large volume of light crude, according to the US Coast Guard.
According to bunker market sources, even with the restrictions some bunker fuel cargoes can be moved through the area affected by the spill.
"If you can load and get permission from the US Coast Guard, you are able to move downriver to anchorages, but the process is a bit of a pain," one trader said.
Supply tightness has prevailed in the New Orleans bunker fuel market in recent weeks, as only two producers have product to offer, with earliest availabilities scheduled in early March.
Monday, high and low sulfur bunker fuel prices in New Orleans were assessed at $635/mt ex-wharf and at $735/mt ex-wharf, up $1 and $2, respectively, which widened the hi-lo spread by $1 to $100/mt.
The average hi-lo spread in New Orleans year to date is $89.80/mt, Platts data shows.
Source: Platts
"The New Orleans bunker fuel market has been dealing with tight supplies [and] foggy conditions in recent weeks and the oil spill is making things more difficult," a bunker producer said.
Monday morning the Lower Mississippi River remained closed from mile marker 90 near New Orleans to mile marker 155 near St. James, Louisiana. The affected section of the river reopened with restrictions at about 1:30 pm CST (1930 GMT) Monday.
The closure was due to an oil spill after two vessels collided Saturday, resulting in a barge breach and release of a large volume of light crude, according to the US Coast Guard.
According to bunker market sources, even with the restrictions some bunker fuel cargoes can be moved through the area affected by the spill.
"If you can load and get permission from the US Coast Guard, you are able to move downriver to anchorages, but the process is a bit of a pain," one trader said.
Supply tightness has prevailed in the New Orleans bunker fuel market in recent weeks, as only two producers have product to offer, with earliest availabilities scheduled in early March.
Monday, high and low sulfur bunker fuel prices in New Orleans were assessed at $635/mt ex-wharf and at $735/mt ex-wharf, up $1 and $2, respectively, which widened the hi-lo spread by $1 to $100/mt.
The average hi-lo spread in New Orleans year to date is $89.80/mt, Platts data shows.
Source: Platts
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