Total to Suspend U.S. Gulf Coast Bunker Supply Operations After July

by Ship & Bunker News Team
Friday July 22, 2016

Total S.A. (Total) says its bunker supply division in the U.S. Gulf Coast region will be suspended, effective August 1, Total Specialties USA has told Platts.

The company noted that it will continue its bunker supply operations in the U.S. Gulf Coast region as normal for the remainder of July.

A number of sources in the bunker market are said to have credited tight competition as the reason for Total's decision, with one U.S. Gulf Coast trader commenting that there are "too many players in the market for them to compete."

"They are never able to quote. They are quoting for the rest of the month and that's it," the trader added - a comment that is said to have been confirmed by a further two sources in the market.

Weak demand for RMG 380 amid strong supply in the Houston market is said to have resulted in the region's stiff competition, with seven suppliers noted to be currently vying to provide bunkers to ships calling the port.

Ship & Bunker data shows that IFO380 prices at the port, which have been declining since last Friday, were at $226 per metric tonne (pmt) yesterday.