US Gulf Coast bunker fuel prices drop to lowest levels since summer of 2017

Spot bunker fuel prices on the US Gulf Coast plunged Monday to their lowest levels in more than 2 1/2 years amid free-falling crude oil values and decimated demand.

"Seems like no bottom in sight," one trader said.

S&P Global Platts assessed ex-wharf MGO bunkers in Houston down $30 to $420/mt, lowest since being assessed at $11/mt on June 11, 2017.

New Orleans MGO also fell $30/mt to $430/mt ex-wharf Monday, its lowest assessed value since reaching $427/mt on July 18, 2017.

IFO 380 in Houston was assessed down $30 to $265/mt ex-wharf, its lowest mark since reaching $262/mt on July 5, 2017.

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New Orleans IFO 380 ex-wharf product fell $30 to $261/mt. The last time it was assessed lower was June 26, 2017, at $258/mt.

Spot ex-wharf 0.5%S marine fuel bunkers in Houston plunged $45 to $365/mt on source indications, with New Orleans ex-wharf bunkers falling in tandem. Those were the lowest values for 0.5%S spot USGC bunkers since Platts began assessing them last year.

Tremendous upstream pressure came from front-month ICE Brent prices, which closed down $10.96/b ($83.18/mt) to $34.31/b.

The NYMEX ULSD prompt-month futures contract, meanwhile, fell 22.23 cents/gal ($69.56/mt) to 116.29 cents/gal.

Liquidity was almost nonexistent on the US Gulf Coast, as well.

Sources said the market seemed to be spooked by the falling crude values, and finding good pricing proved difficult.

"Levels are all over the place," said a second trader.