Nustar Energy signs Caribbean fuel oil supply agreement
Aug 23 (Reuters) - NuStar Energy LP said on Friday it has signed a fuel oil supply agreement for its St. Eustatius storage facility in the Caribbean with a major trading company, in a bid to reduce its working capital costs.
NuStar, which has more than 13 million barrels of storage capacity on the tiny Caribbean island, said it would purchase bunker fuel from the trading firm to supply its customers in the region. The company estimated it would lower its working capital expenses by $40 million to $50 million and reduce NuStar's exposure to price swings.
The company did not identify the trading company.