- Peru markets benefit from lack of supply in Ecuador
- 0.5%S-MGO spread widens in Vancouver
- Oversupply issues persist for US Gulf Coast
Spot marine fuel markets in the Americas would likely see rangebound pricing due to relatively unchanged weak demand fundamentals, with the US crude complex providing direction. This article published in Platts deeply explains rangebound pricing.
Latin America
Latin America bunker markets enter the week in a scenario of supply constraints at a couple of ports and weak demand in others, amid rising global oil prices.
Panama
Pricing changes from June 7 to June 11 in 0.5%S marine fuel were more subdued in the region compared with previous weeks, with the fuel increasing $8, or 1.5%, at $544/mt ex-wharf in Balboa, Panama. Sources said the market was active but not as much as in previous weeks.
Callao
In Callao, demand was strong during the week, rising $7, or 1.1%, at $625/mt. A market source said the Peruvian port keeps benefiting from diminished supply in neighboring Ecuador.
Guayaquil
The 0.5%S fuel in Guayaquil also rose $7, or 1.1%, at $617/mt, with sources talking of both “dry” supply and low demand.
Difficulties due to protests
While social protests and blockades have continued for more than a month and a half in Colombia, suppliers have managed to continue supplying in a framework of low demand.
“Protests are still causing difficulties, but vehicles have been moving. Activity is more or less regular,” a market participant said.
“We are trying to meet the demand we can commit to,” another participant said. “In general, the market is showing distrust due to the civil situation,” the source added.
Valparaiso
In Valparaiso, prices recovered from a retreat in early June though ended assessed at $688/mt June 11 — unmoved from June 7. “The market has been slow today, but it is much more active compared to previous months,” a bunker source said.
Argentina
The 0.5%S only fell in Argentina, $3, or 0.5%, at $566/mt in a liquid market with strong competition. Marine Gasoil experienced a strong jump of $29, or 4.3%, at $707/mt as market sources talked about a lack of supplies from one big supplier.
Refinery prices influenced an $18 increase, or 2.8%, in Colombia at $672/mt.
Pricing in the region will gather support from crude futures, which were climbing June 14 on bullish demand outlooks after advancing 0.7% at $72.79/b the week prior. Wholesale 0.5% marine fuel rose 0.6% at $517.75/mt.
North America East, West coasts
Weak demand
On the East Coast, spot 0.5%S marine fuel retail pricing inched lower June 7-11, reflecting lower supplier offers tied to weak demand fundamentals that were mitigated by a stronger UC crude complex.
Spot 0.5%S assessments shed $2 June 7-11 in each port, with New York closing the period at $522/mt ex-wharf and Philadelphia maintaining its $7 spread at $529/mt ex-wharf.
“Seeing super-low demand in New York this week for some reason,” a local source said.
Marine Gasoil
Marine Gasoil spot values followed the overall bearish trend, with New York and Philadelphia dipping $1 each at $615/mt ex-wharf and $621/mt ex-wharf, respectively.
Montreal spot MGO pricing showed a divergence from the trend, rising $6 during the period on higher supplier offers talked in a wide range.
A local source cited congestion in the Montreal market to end the week, adding that prompt delivery options were not in play before June 14-15.
On the West Coast, spot values mostly inched up for the period of June 7-11 on support from firmer Asian segments and a stronger US crude complex, with weak demand limiting liquidity and mitigating gains overall.
The Vancouver spot 0.5%S assessment rose $2 for the week to last be assessed at $573/mt ex-wharf while Los Angeles was flat at $553/mt delivered.
MGO markets showed a more pronounced strength, with Vancouver prices rising $7 over the period to close the week at $709/mt ex-wharf.
“[Northwest] diesel racks moving faster than Singapore 10 ppm [gasoil],” a supplier said of higher Vancouver levels, adding that it was seeing “absolutely no demand.”
The spread between 0.5%S and MGO in Vancouver was “growing” due to these factors, the source added.
US Gulf Coast
IFO 380 CST prices
US Gulf Coast bunker prices were mostly steady during the week June 7-11, with the biggest gain being $4/mt in IFO 380 CST prices in Houston and New Orleans and the biggest decline being $1/mt in New Orleans MGO.
Two-tiered VLSFO pricing
Sources reported an oversupplied market that has yet to see much of an increase in demand, which could help the two-tiered pricing structure persist in Houston VLSFO based on stem sizes.
A source also said barges in Houston would be congested into the coming week, helping smaller suppliers “cherry-pick” deals to fix at high prices that are not done by big suppliers with inhouse barging.
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Source: Platts
