High sulfur bunker fuel in the port of Callao, Peru, reached a 16-month high Monday after suppliers dependent on product from state refiner Petroperu raised prices.
IFO 380 CST in the South American port was assessed at $366/mt Monday, up $3 from Friday and the highest price since August 24, 2015. The assessment was based on indications from physical suppliers, two of whom said they were passing on a cost increase of as much as $30 from Petroperu posted Saturday.
"It's been a big rise," one supplier in Callao said Monday. "We may have to lower our margins to be competitive."
Physical suppliers in Callao who depend on Petroperu have reported tight availability or no product for much of the past month, citing refinery maintenance and work on a dock at the port of Callao that can accommodate large ships.
Availability was "fine for the moment," a supplier said Monday. "Resupply arrived."
Petroperu competes with Spain's Repsol and its La Pampilla refinery to supply marine fuel in Peru.
Petroperu did not respond to a request for comment Monday.
Bunker fuel prices have risen to yearly highs in several Latin American ports since the start of summer in the Southern Hemisphere. Residual fuels have also gained along with the overall oil complex after OPEC's agreement to freeze output on November 30.
