- Mild movements in US Gulf Coast and Latin America amid volatile week for global energy.
- New Orleans premium over Houston expected to be supported by spring thaw.
- Stronger declines seen in New York and Los Angeles.
A recent GRM news article written by Silvia Struthers, Daron Jones and Phillipe Craig reveals that Spot bunker markets in the Americas return to normal operations. After what market sources characterized as a slow week marked by the Good Friday holiday and Holy Week in Latin America.
Latin America
Pricing in most key Latin American ports moved in a narrow range with mixed movements. Demand was heard generally subdued, except for Brazil and Argentina, where exports for the harvest season kept supporting the market. “It is very good, (although) slightly lower than last year’s,” a market source said about the season.
The recent volatile sessions in the energy complex haven’t been followed immediately by Latin American markets, showing a lagging reaction to global changes. The exception was Panama, where pricing rose April 1 after crude futures spiked. However, ICE Brent is posting declines at the start of this week, after the OPEC+ coalition decided to relax production quotas from May to July.
Marine fuel 0.5%S rose $6 (1.2%) in Panama from March 29 to April 1, to end the shortened week at $492/mt. In Santos, the fuel fell $11 (2.3%) to $471/mt, and in Buenos Aires it declined $5 (1%) to $500/mt. Valparaiso also experienced a decline of $11 (1.8%) to $612/mt.
Marine gasoil saw an $11 (1.9%) increase in Balboa to $578/mt, and a slight $1 advance in Santos to $634/mt. No changes in MGO pricing were registered during the week in Buenos Aires, Callao and Valparaiso.
However, in Cartagena, and following lower refinery prices, MGO dropped $17 (2.7%) to $603/mt.
North America
Spot retail bunker prices on the US Gulf Coast were almost unchanged last week.
Strong spikes were seen on April 1, tracking increases in global energy, but this only balanced declines in previous days.
Marine fuel 0.5%S fell $1 both in Houston and New Orleans, to $475/mt and $490/mt, respectively, leaving the spread between the ports at $15/mt.
“Some congestion still around, resupply still tight,” a local source said of the New Orleans market. “And with the spring thaw resulting in high river levels and fast currents starting, there will begin to be difficulty reloading. All this means we will continue to see the margin compared to Houston propped up, maybe even going higher.”
Marine gasoil in both ports also edged down $1 during the week, to be valued at $560/mt in Houston and at $575/mt in New Orleans.
Bunker prices on the US Atlantic and West coasts weakened last week.
Ex-wharf 0.5%S marine fuel and MGO in New York Harbor tumbled $26/mt and $14/mt, respectively.
Volatile Asian wholesale values led to ex-wharf MGO in Los Angeles plummeting $36/mt for the week, while Los Angeles 0.5%S marine fuel slid $16/mt last week.
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Source: GRM
