San Antonio-based NuStar said the agreement enables it to create a “back-to-back” trading model in which it purchases bunker fuel supply from this company to service customers in St. Eustatius and the Caribbean.

The trading model will allow NuStar to reduce working capital tied to inventory, reduce exposure to price volatility and hedge ineffectiveness, and better manage operating expenses.

NuStar expects to lower its working capital expenses by $40-50 million, and save the company-related attendant interest and hedging costs.

NuStar president and CEO Curt Anastasio said this move will strengthen the company’s bunker operations within is fuels market segment in challenging market conditions.

“This agreement allows us to remain in a competitive position as a bunker fuel marketer, while reducing our exposure to price risks and dramatically reducing our working capital expenses related to our bunker marketing operations,” Anastasio said.

“We also believe that it creates pportunities to grow our fuel oil business in the Caribbean.”