Retail marine fuel spot markets enter the week Dec. 14-18 on a bullish kick while shaking off weak demand, as recent gains in key global energy indicators have propped up values.
LATIN AMERICA
Spot bunker prices in Latin America have continued to be supported by strong global oil markers as the first COVID-19 vaccinations are now under way.
Even when demand remains subdued in several countries, the optimistic environment has shored up prices for both marine fuel 0.5%S and marine gasoil, which in various Latin American ports are increasingly closer to the high values seen in the first half of March.
Both fuels increased their value across all Latin American ports last week, but the steepest climbs were seen in Colombia. Amid talk of short supply, the 0.5%S in Cartagena rose $32 (8.6%) from Dec 7-11, to be assessed at $405/mt at the end of the week.
The Colombian port also registered the sharpest advance in marine gasoil, increasing $28 (5.9%) to be valued Dec. 11 at $500/mt. A higher price for VLSFO in Cartagena was only seen on March 20, when it was assessed at $410/mt, while the previous highest value for MGO was $520/mt, on March 9.
Increases in the energy complex last week gave a boost to bunkers in Panama and Brazil.
The 0.5%S in the Panamanian hub reached $400/mt, adding $9/mt (2.3%). The last time the IMO-compliant fuel was above $400/mt was on March 6, when it was priced at $455/mt. MGO in Balboa rose $6 (1.4%) to $447/mt, with its previous highest value reached also on March 6, at $505/mt.
In Santos, 0.5%S advanced $10/mt (2.6%) last week, to $390/mt, with its previous peak reached on March 5, at $425/mt. MGO in the Brazilian port gained $8/mt (1.6%) to $504/mt, its highest value since $511/mt on Sept. 2.
In Chile, increases in refinery prices led to a strong advance in the 0.5%S value last week with some sources talking of a slightly improved demand. The 0.5%S rose $21/mt (4.7%) to $472/mt, its strongest performance since $493 on March 27.
NORTH AMERICA AC/WC
Retail 0.5%S climbed 0.3% in New York, while it fell 1.0% in Philadelphia. To start the week Dec. 7, Philadelphia was at a $10 premium to New York. At the close of the week, the premium narrowed to $5 based on indications heard.
MGO moved more significantly in New York and Philadelphia as the ports increased by 3.5% and 3.0%, respectively. Philadelphia's premium over New York narrowed from $3 on Dec. 7 to $1 on Dec. 11.
In Charleston and Savannah, IFO 380 gained 2.9% and 5.9%, respectively. MGO weakened by 2.4% in Charleston and 2.0% in Savannah.
Vancouver retail 0.5%S strengthened by 2.2%, while MGO climbed 1.8%. Demand in Vancouver was heard to be weak throughout the week.
Seattle maintained a $5 premium to Vancouver over the course of the week. Retail 0.5%S and MGO moved 2.2% and 1.8% higher, respectively, as the port tracked movements in Vancouver.
In Los Angeles, MGO climbed 2.1%. According to a source, there is a market-wide shortage of IFO 380, but the source was unsure as to why.
USGC
Spot bunkers markets along the US Gulf Coast enter this week facing persistent weak demand fundamentals, although pricing ended the period of Dec. 7-11 higher on support from the bid-side and stronger energy futures.
The spot 0.5%S retail marine fuel assessment in Houston rose $16/mt (4.5%) to $370/mt ex-wharf from Dec. 7-11, while the New Orleans marker climbed $11/mt (3%) over the same period to $375/mt ex-wharf.
MGO spot pricing rose $13/mt (3.1%) in Houston to $435/mt ex-wharf, while in New Orleans value climbed $8/mt (1.9%) to $440/mt ex-wharf.
The Houston market enters the week with some talk of congestion issues, a supplier source said.
"Depending on quantity and date we can possibly make it work," the source added.
New Orleans continues to be talked "dead" with a regional source adding that seasonal destocking efforts won't be as much as a factor as in Houston due to the differing end-of-year tax laws in Texas and Louisiana.
