- NY, Philadelphia bunkers track stronger Brent, ULSD futures.
- Latin America bunkers on a mixed trail; Valparaiso’s prices rise.
- USGC ports see smaller stems dominate spot landscape, pressure prices
Spot bunkers pricing showed mixed movements throughout the Americas during the week of Oct. 12-16, and markets enter this week with an eye on crucial global energy indicators amid recent volatility and fluid demand fundamentals, reports S&P Global Platts.
Market Prices in Latin America
Spot bunker markets in Latin America start Oct 19 with local fundamentals on their radar, after a mixed performance last week which in several ports ignored a slew of increases in global oil markers.
In Chile, prices rose for all segments putting an end to four consecutive weeks of declines which took its bunker values closer to those in other countries in the region.
Marine fuel 0.5%S in Valparaiso climbed $12/mt (3.26%) throughout last week to be assessed Oct. 16 at $380/mt. It was the highest increase among Latin American ports for 0.5%S and Valparaiso’s top value for the IMO-compliant fuel since $385/mt on Sept. 29.
Another port showing gains was Santos, trekking up $6/mt (1.79%) to $342/mt.
Callao, competing closely with Chile, edged down only $2 (0.53%) to $374/mt.
“Little by little, there is more demand,” a market participant said about the Peruvian market.
“Things look more encouraging, we’ll see if it keeps up,” another participant said. “We’ll see how closings in Europe (due to the coronavirus) impact us,” the participant said.
Demand in Cartagena has also increased “a little bit, especially big volumes,” a supplier in the Colombian market said. The 0.5%S was almost flat in Cartagena, declining $1/mt (0.31%) to $319/mt.
Another source with knowledge of the Colombian market said demand increased around 17% last week compared to the previous week, with an average of 3,000 mt sold of 0.5%S.
The source said historically, demand in the last quarter of the year increases in Colombia due to agriculture and products trade for the holidays, as well as the cruise ship season, which has been suspended this year due to the pandemic.
In Ecuador, sources have also started to talk about a slight increase in demand which, at the same time, has intensified competition among suppliers. Guayaquil’s 0.5%S fell last week $5/mt (1.36%) to $362/mt.
Competition with Brazil and a slightly lower demand led to a steep drop in Argentina’s 0.5%S. The fuel retreated $21/mt (5.72%) during the week to $346/mt. It was its lowest level since July 2, when it was valued at $343/mt.
In Balboa, a bunker hub which serves as a guidance to Latin American bunkers, 0.5%S fell $3/mt (0.91%) to $325/mt on an ex-wharf basis.
In the news from Uruguay, the country’s Chamber of Deputies approved a measure to allow private entities to import bunker fuel. The action still needs the Senate’s approval. Montevideo’s bunkers are the highest-priced among key ports assessed by S&P Global Platts. The 0.5%S in the Uruguayan port rose $2/mt (0.46%) last week to $439/mt.
Market Prices in Atlantic Coast, West Coast
On the Atlantic Coast, New York and Philadelphia both trended higher from Oct. 12-16, as the ports tracked movements in Brent and ULSD. In New York, 0.5%S strengthened 3.7% from $323/mt to $335/mt, while Philadelphia saw a 3.6% increase from $330/mt to $342/mt. Philadelphia remained at a $7/mt premium to New York over the week. MGO increased from $355/mt to $360/mt, for a gain of 1.4% in New York. In Philadelphia, MGO also increased by 1.4% from $360/mt to $365/mt.
Charleston and Savannah were heard to be busy throughout the week. IFO 380 increased by 2.4% and 6.9% in Charleston and Savannah, respectively. Savannah was “playing catch up on numbers” for IFO 380, according to a local source. MGO fell by 0.5% in Charleston and by 0.8% in Savannah over the course of the week.
On the West Coast, spot prices tracked Singapore, in addition to Brent and ULSD.
In Vancouver, ex-wharf spot 0.5%S pricing rose 1.9% from $309/mt to $315/mt from Oct. 5-9. MGO in this port increased from $385/mt to $388/mt, for a gain of 0.8% over the same period. Availability in the port was heard to be tight through Oct. 24.
Seattle prices also strengthened from Oct. 12-16. For 0.5%S, the port increased by $9/mt from $309/mt to $318/mt, for a gain of 2.3%.
MGO increased by 1.6% from $385/mt to $391/mt. At the beginning of the week, Seattle was talked flat to Vancouver. To end the week, however, Seattle was talked flat to $5/mt above Vancouver.
USGC Markets
For US Gulf Coast markets, spot assessments saw sharp declines from Oct. 12-16 amid weak demand fundamentals, particularly for the Houston market and on retail 0.5%S value.
Sources enter this week with an eye on ex-wharf fixture pricing for smaller volumes following feedback that the majority of business was being done on combo stems smaller than 500 mt for 0.5%S and below 100 mt for MGO late last week.
From Oct. 12-16, spot retail 0.5%S pricing in Houston slipped $25/mt (8.2%) in closing last week at $280/mt ex-wharf, while New Orleans generally tracked that trend in falling $10/mt (3.2%) to $300/mt ex-wharf over the same period.
MGO spot pricing moved in the opposite direction as suppliers were heard holding more steady rangebound values while offering greater discounts on 0.5%S, with sourcing pointing to stable lump-sum barging rates allowing suppliers to recoup margins on final delivered fixture levels.
The ex-wharf Houston spot price of MGO rose $7/mt (2%) from Oct. 12-16 to close the week at $358/mt, while New Orleans moved up by $12/mt (3.4%) over the same period to be assessed most recently at $368/mt ex-wharf.
“Very few inquiries and all are low quantities,” a Houston source said Oct. 16. “Haven’t seen anything above 500/100.”
That dynamic was echoed earlier in the week by another regional source.
“Earning more on barge than on the product … especially smaller volumes,” the source said Oct. 13.
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Source: S&P Global Platts
