New Orleans bunker fuel prices on Thursday reached their highest levels since July 2015 outpacing the movements of their respective underlying products, after the market experienced residual effects from the recently announced OPEC deal.
US Gulf Coast fuel oil -- the primary component of IFO 380 CST in that region -- rose $1.04/b, or about $6.70/mt, from Wednesday.
New Orleans IFO 380 CST was assessed at $298.50/mt ex-wharf, up $17.50/mt from Wednesday and the highest level since July 20, 2015, when it was $304/mt, S&P Global Platts data showed.
USGC ULSD prompt pipeline, an indicator of the cost of USGC MGO, rose 6.06 cents/g or about $19/mt, from Wednesday.
New Orleans MGO was assessed at $498/mt ex-wharf, up $20/mt ex-wharf from Wednesday, and the highest level since July 29, 2015 when it hit $506.50/mt ex-wharf, according to Platts data.
"Not a buyers market," a trader said of the bunker market Thursday.
According to a Houston supplier, "everyone is still digesting OPEC's agreement." The supplier said "it's insane" to immediately buy bunker fuel after the price rise seen Wednesday and Thursday.
During the Platts Market on Close assessment process, Peninsula bid for 500 mt of New Orleans IFO 380 CST with a December 4-8 laycan, at $289/mt ex-wharf which was the same level Platts pegged that product at 1:40 pm EST. There was no selling interest at that level, and subsequently Peninsula raised its bid gradually, up to $298/mt ex-wharf, where the bid was left standing at the end of the MOC process.
