Two MR ethanol tankers wait outside fire-damaged NuStar facility

摘要

After ethanol storage tanks at NuStar’s Selby terminal in the US state of California caught fire on Oct.15,the company was forced to declare a force majeure as the facility looks to restart operations.On Oct.22,two medium-range(MR)tankers carrying ethanol from Santos,Brazil,the Eco California and Sadab Silver,have been reported to be situated in San Francisco Bay outside of the terminal,unable to unload their cargoes.The Eco California had already unloaded part of its cargo in Los Angeles while the Sadab Silver made a direct voyage San Francisco.However,it is unknown whether the tankers are carrying cargoes for NuStar.Because ethanol imports will add large volumes to supply in California,market participants in the state usually look to draw down inventories in anticipation of vessels arriving.Because the tankers were unable to load any product,local buyers have turned to the domestic market instead.A source from Brazil said,”Because the two MR vessels cannot discharge,buyers who are short the product are having to buy rail in that area and have pushed up prices from plus 2 over Chicago to plus 25-28￠/gal over Chicago.”(Oct 22)