AMERICAS BUNKERS: Key market indicators this week

New York — Spot retail bunkers pricing in the Americas enters this week Sept. 28 with an eye on key energy and refined products sectors following some signs of volatility last week, with mixed feedback heard on demand fundamentals for several ports.

WHOLESALE

The US bulk fuel oil market ended the week slightly lower on word of resupply entering a somewhat tight supply situation for marine fuel 0.5%S.

USGC marine fuel 0.5%S was assessed Sept. 25 at $298.25/mt, down $4.50 from Sept. 18.

Much of the decline was attributed to a similar drop in the underling crude complex. The ICE front-month Brent futures contract was assessed as of 2:30 pm ET on Sept. 25 at $41.93/b, a fall of $1.24 from the previous week.

Market participants were said to center their focus on incoming resupply of marine fuel 0.5%S from Europe in the coming weeks.

The Andes, containing around 470,000/b of LSFO, was fixed on Sept. 15 out of the Skarvik Terminal in Sweden, and is set to arrive in New York on Oct. 3, data intelligence firm Kpler data showed.

US/CANADA

Spot bunkers pricing in North America ended the week generally lower on pressure from weaker crude values, with additional pressure emerging from relevant wholesale marine fuel segments and diesel futures. Demand fundamentals remained weak for most retail bunkers sectors in North America, with Houston seeing pronounced pressure to end the week on talk of motivated sellers lowering the price floor in destocking moves.

In Houston, spot 0.5%S retail value closed the week at $290/mt ex-wharf on Sept. 25, down $25 (7.9%) week on week, with values talked in a wide range and as low as the $280s/mt from isolated sellers looking to move barrels and post-storm congestion issues persisting.

Market players enter the week with an eye on port operations and expectations that suppliers will be more caught up after Tropical Storm Beta caused closures and backlogs last week, sources said. They are also expected to be monitoring the low end of price ranges and offers following talk of motivated sellers going low and pressuring the market as a whole.

MGO spot pricing in Houston was less volatile in closing the week at $334/mt, down just $13 (3.7%) week on week, as some talk of "suppliers running tight" emerged Sept. 25, a source said.

In New York, spot 0.5%S retail value fell to $324/mt ex-wharf via a week-on-week decline of $5 (1.5%) in tracking the wholesale segment lower, while MGO came off to $343/mt ex-wharf, down $6 (1.7%) over the same period.

On the West Coast, spot movements were mixed week on week as fundamentals shifted for the Vancouver market on Asian support for 0.5%S and increased competition for MGO.

Overall, the spot retail price of 0.5%S in Vancouver fell to $304/mt ex-wharf, down $13 (4.1%) week on week, although the decline was mitigated by gains on Sept. 24-25 tied to support from higher values in the competing Singapore market.

MGO spot pricing in Vancouver rose week on week to $384/mt ex-wharf, up $7 (1.9%) from Sept. 18-25, with the gains held in check by late-week pressure tied to increased competition for Pacific Northwest suppliers.

"Not sure if that trend will continue," a local source said of a shrinking MGO-VLSFO spread to close the week. "Next week will be interesting."

LATIN AMERICA

Latin America bunker prices start the week with a subdued note, having experienced moderate movements in the last few days, with some countries seeing a slight recovery in demand, according to market participants.

In Balboa, marine fuel 0.5%S lost by the end of last week the strength it had seen for several days before and was assessed Sept. 25 at $310/mt, a $10/mt (3.1%) decline from the beginning of the week. It was also its lowest level since it was assessed at $300/mt in June 15.

"Demand is fine in Panama, some days better, others not so much," a market source said, pointing to slow movements on Thursday and Friday. However, sources said they still perceive price support from a persistent tightness in fuel resupplies and blending components for bunkers, which could entail firmer prices this week.

Demand has been firmer in the port of Buenos Aires in September, according to suppliers and it is expected to remain strong this week.

"It is uncommon because September is one of the months with traditionally lower demand," a source said, adding the strength might be the result of a strong harvest season and plenty supplies from refineries. "What we don't know is how much it will fall in October," the supplier said.

During last week, 0.5%S experienced in the Argentinian port an increase of $5/mt (1.4%) to $365/mt delivered.

In Valparaiso, prices dropped substantially last week, $13/mt (3.2%) to $390/mt delivered, as a result of lower refinery prices and competition with ports from neighboring countries, according to market sources.

In Callao, values were also softer as an increased demand seen in previous days subsided. Marine fuel 0.5%S retreated $16/mt on the week (4.2%) to $370/mt delivered.

A slight retreat was also registered last week in Guayaquil but amid market talk of an improved demand and a renewal of 0.5%S imports from Panama by some suppliers. In the Ecuadorean port the fuel dropped $5/mt (1.3%) during the week to $373/mt ex-wharf.

Marine gasoil experienced declines across the board in the region. Last week saw MGO's largest retreat in Santos, where it fell $19/mt (4.4%) to $415/mt delivered. The more modest decline was seen in Callao, where the fuel fell $2/mt (0.4%) to $470/mt delivered.