Retail marine fuel spot pricing entered the week of April 18-22 trending higher throughout the Americas, with muted market activity being met recently with higher indications and offers as suppliers adjust values in line with gains in global crude indicators.
Latin American ports saw spot bunkers pricing move higher the week of April 11-14, tracking a stronger US crude complex as Brent and ULSD futures provided support.
Panama spot 0.5%S marine fuel bunkers value rose $60 during the period to close the shortened week at $900/mt ex-wharf Balboa.
MGO value in Panama also moved up as the ex-wharf Balboa assessment gained $108 to price at $1,248/mt ex-wharf April 14 — up nearly 9.5% from the April 8 close.
Some sources in Panama were monitoring reports of possible contaminated marine fuel in Houston, although there was no sentiment pointing to an immediate impact for the key Central American hub.
“Hope this is just a false alarm for Houston,” the Panama source said.
In Brazil, the state-owned refining sector was seen increasing pricing throughout the week, with retail assessments reacting in lockstep.
The delivered-Santos spot 0.5%S fuel price rose $49 from April 11-14 to last close at $916/mt while the MGO assessment rose $15 over the period to $1198/mt delivered.
Neighboring Argentina saw spot assessments show mixed movements throughout the week, with relatively dormant demand and shifting supply fundamentals for some market participants, sources said.
Spot 0.5%S pricing for Buenos Aires rose $46 during the week to be assessed most recently at $960/mt delivered. MGO in the key Mercosur port rose $17 to last price at $1,237/mt delivered on April 14.
Some price volatility was there to close the week in Argentina, as a few participants moved up pricing with rising Brent futures to close the week, a source said.
Early April-14, talk of $1,230/mt delivered MGO pricing was later met with talk of indications in the $1,240s/mt, sources said.
“There is no $1,230/mt [MGO price] … not now,” a trader source said late in the day, citing additional gains from both Brent and diesel futures.
The Peruvian market saw some of the most pronounced movements and price volatility, as supply tightness was a concern for Callao, sources said.
Spot 0.5%S pricing for Callao rose $140 (12.5%) during the week to close April 14 at $1,260/mt delivered. Similarly, the MGO spot price for Callao rose $55 (4%) to end the week at $1,415/mt delivered.
US East, West Coasts
On the US East Coast, bunker fuel spot pricing rose in the week to April 14 ahead of the Easter holiday.
All marine fuel products in New York rose higher. 0.5%S fuel oil gained $72/mt to $951/mt ex-wharf while marine gasoil gained further $120 to 1,337/mt ex-wharf.
Philadelphia 3.5%S IFO 380 tracked the movements seen in New York, moving $49/mt higher to $775/mt ex-wharf.
Charleston marine gasoil gained $169 to $1,384/mt ex-wharf, tracking higher ULSD NYMEX futures and market feedback.
Spot inquiries for US spot retail market were mostly quiet for the East Coast
On the US West Coast, Los Angeles 0.5%S fuel oil climbed $31 to $931/mt ex-wharf while marine gasoil gained $102 to $1,242/mt ex-wharf.
In Vancouver, fuel oil 0.5%S saw a rise of $26/mt to $860 on demand feedback holding prices lower to the movements seen in the underlying market. Marine gasoil in Vancouver gained $102 to $1,260/mt ex-wharf.
Cruise ship season is expected to increase ship numbers and demand for marine fuel in Vancouver this week, although all term contracts, a source said. Hence, it is still uncertain how this will impact the spot retail market in Vancouver.
US Gulf Coast
On the US Gulf Coast, spot bunker fuel prices also moved higher with a stronger US crude complex.
In Houston, 3.5%S IFO 380 moved $62 higher to $718/mt ex-wharf while 0.5%S moved $70 to $920. Marine gasoil in Houston saw a sharp rise of $115 to $1,272/mt ex-wharf.
Talks of possible marine fuel contamination In Houston caused concern and uncertainty in the spot fuel market. However, confirmation still awaits for tracing the source of contamination of the fuel, and no direct impact to supply or demand of spot marine fuel was seen as of date, source said.
New Orleans moved in line with the movements seen in Houston, with 0.5%S gaining $70 to $975/mt ex-wharf. Marine gasoil in New Orleans saw sharp gains of $115 to $1,320/mt ex-wharf. Spot 3.5%S IFO in New Orleans gained $62 to $787/mt ex-wharf April 14.