US Gulf Coast bunker fuel prices plunge to lowest levels since mid-2016

New York — Spot bunker fuel prices on the US Gulf Coast plummet on Wednesday to their lowest level in more than three and a half years, as underlying crude oil markets continued to swoon due to coronavirus concerns.

S&P Global Platts assessed ex-wharf MGO bunkers in Houston down $10 to $385/mt on source indications.

The last time that product was assessed lower was April 19, 2016, at $214/mt ex-wharf.

New Orleans MGO also dropped $10/mt to $395/mt ex-wharf, lowest since reaching $214/mt on August 11, 2016.

USGC IFO 380 bunker fuel, out of favor with the onset of the 0.5%S marine fuel mandate, took the biggest tumble.

Houston product was assessed down $52 to $215/mt ex-wharf on source indications. That was the lowest mark for that product since reaching $212/mt on August 11, 2016. New Orleans IFO 380 ex-wharf product fell $10 in tandem to $211/mt, also lowest since August 11, 2016, at $214, at $258/mt.

Spot ex-wharf 0.5%S marine fuel bunkers in Houston slid $5 to $325/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.

The ongoing coronavirus saga caused another fall in front-month ICE Brent prices, which closed down $1.29/b ($9.79/mt) to $35.77/b.

The NYMEX ULSD prompt-month futures contract dropped 1.19 cents/gal ($3.72/mt) to 123.80 cents/gal.