AMERICAS BUNKERS: Key market indicators this week

Houston — Bunker pricing in the Americas starts the week focused on the energy complex, which helped values strengthen in previous days, with some exceptions.

US/CANADA

North American bunkers pricing ended the week on a generally bullish kick following several days of support from a stronger energy complex, with stagnant demand fundamentals doing little to mitigate rising values.

In the futures and upstream markets, ICE Brent prompt-month futures contract rose $3.57/b, or 9.02% last week to $43.14/b, while the Gulf Coast 0.5%S barge market gained $13.50/mt, or 4.67%, to $302.75/mt.

Participants in USGC markets will keep an eye on logistics following talk of congestion in Houston and New Orleans late last week in the wake of Hurricane Sally impacting the latter, with Tropical Storm Beta now bearing down on the region.

Spot 0.5%S retail pricing in Houston climbed to $315/mt ex-wharf Sept. 18, up $5 (1.6%) week on week, while MGO value rose to $350/mt ex-wharf on a gain of $30 (9.4%) over the same period.

In the Northeast, spot pricing in Montreal has been talked as more competitive with New York and Philadelphia, both of which have dealing with limited liquidity on weak demand in recent weeks.

The New York market saw spot pricing for 0.5%S rise to $329/mt ex-wharf, up $15 (4.8%) on the week, while Montreal's 0.5%S assessment climbed to $385/mt for a gain of $17 (4.6%) week on week.

MGO spot pricing in New York moved $14 (4.2%) higher on the week to $349/mt ex-wharf, and Montreal registered a gain of $18 (4.8%) over the same period to close at $395/mt ex-wharf Sept. 18.

On the West Coast, fundamentals in Vancouver are expected to receive some support from the grain industry on seasonal improvements in demand, although pressure from the lack of consumption via cruise ships continues to be felt.

The ex-wharf spot price of 0.5%S in Vancouver rose to $317/mt to close last week, up $31 (10.8%) from Sept. 11, while MGO value moved up $7 (1.9%) to $377/mt ex-wharf over the same period.

LATIN AMERICA

Pricing in some key Latin American ports is entering the week strengthened by gains in energy complex markers the region follows traditionally for guidance. However, low demand is still pressing some ports.

Panama's 0.5%S market is experiencing tight availability both in Balboa, on the Pacific Coast, and Cristobal, on the Atlantic, leading to higher resupply costs, according to a market source. The pattern is expected to last at least until October, the source said. Panama's 0.5%S rose last week $16/mt (5.11%) to $329/mt.

In Argentina, 0.5%S increased $19/mt (5.46%) to $367/mt in Buenos Aires port, aided by an increased demand seen throughout September, according to a market source.

Marine fuel 0.5%S strongest advance was seen in Santos, which rose $24/mt (7.84%) last week, assessed Friday at $330/mt. State-led Petrobras said it will slash exploration and production investments by as much as 37.5% over the next five years amid expectations of reduced global demand and lower oil prices. However, the company said it will keep revitalization efforts at several major heavy oil fields in the Campos Basin. Output of heavy sweet crudes, with 0.5% or less sulfur, has been the basis for Brazil's increasing exports of IMO-compliant bunker fuels to Asia.

In Peru, demand picked up sharply last week with expectations of a continued trend, according to market participants. The 0.5%S market rose $2/mt (0.52%) to $385/mt.

Stagnant-to-lower demand has been pressuring prices in Colombia, where 0.5%S was assessed Friday at $365/mt, unchanged from the beginning of the week.

The marine gasoil segment moved only slightly, up or down 1% or 2% in most of the ports, with the exception of Balboa, where the fuel saw a 3.26% increase, or $12/mt.

According to Panama's Maritime Authority, bunker sales in the country rose for second consecutive month in August, after a steep fall in June, with high sulfur IFO 380 fuel showing the strongest increase, of 41% month on month. VLSFO comprised 72.46% of sales in Balboa, IFO 380 represented 16.02% and MGO, 11.52%.