The falling crude complex caught up with US heavy ends during early trade Tuesday as Gulf Coast high sulfur cash and paper fell to their lowest levels since August 2 and Atlantic Coast cash and paper dropped to their lowest levels since July 25.
The drop in the fuel oil market put downward pressure on bunker fuel values as well, which are resupplied by the residual fuel oil market.
US Gulf Coast 3%S was pegged $1.075/b lower from Monday at $94.55/b. On August 2, physical 3%S was assessed at $93.425/b. In the paper market, the front-month November high sulfur swap was heard talked in early trade $1.10/b lower at $93.95/b, also the lowest since August 2, when it was assessed at $92.80/b according to Platts data.
In the Gulf Coast bunker market, Houston IFO 380 was heard talked around $615/mt, with suppliers saying that there was not much demand for bunker fuel oil with the falling crude complex Tuesday. That marked the lowest level for the port since August 2, when Houston IFO 380 was assessed at $610/mt, according to Platts data.
"I think people [are] just waiting for market to rebound as [there's] no telling how far she will fall," a Gulf Coast bunker fuel oil supplier said.
US Atlantic Coast 1%S was pegged at $101.15, $1.30/b lower than Monday and its lowest mark since it was assessed at $100.60/b on July 25. The November low sulfur swap was heard talked $1.30/b lower at $98.95/b; it was assessed at the same level July 25.
The fall in fuel oil made its presence felt in the bunker market. New York Harbor IFO 380 was indicated down $7/mt to $621-623/mt during morning trade. That marked the lowest level for the port since July 18.
US fuel oil had resisted downward pressure from the crude complex on Monday when USAC 1%S cash and paper rose 60 cents/b while ICE Brent front-month futures were assessed at 3:15 p.m. EDT down 79 cents/b at $109.51/b.
