AMERICAS BUNKERS: Key market indicators Nov. 30-Dec. 4

Spot retail bunkers pricing in the Americas entered the week Nov. 30-Dec. 4 on a bullish kick, with values rising in nearly all ports during the holiday-shortened period of Nov. 23-25 on strong support from key energy indicators.

Latin America

Latin America bunker markets are expected to continue looking to global oil benchmarks for guidance, after a shortened week in which the energy complex's bullish behavior led to equally solid increases in the region.

The three days of market pricing assessments before the Thanksgiving holiday showed increases almost all across key Latin American ports and across all segments, with some reaching levels not seen in more than eight months or even historic record prices. The steepest jumps were registered in Balboa and Callao.

The Panamanian port saw a $17, or 4.7%, increase Nov. 23 to Nov. 25 to $377/mt, its highest level since a $380/mt price reached on March 11, the day the World Health Organization declared the coronavirus outbreak to be a pandemic.

Marine gasoil in Balboa rose $20, or 4.8%, to $435/mt. The value for MGO was only higher in that port on March 9, when it was assessed at $445/mt. High sulfur IFO 380 climbed to 314/mt, up $9, or 3%, in the same three-day period and its highest value since $315 on Aug. 26.

Bunker sources pointed to the energy complex as the main driver for recent increases.

"Prices are flying through the air, as it's happening in all markets," a trader said Nov. 24.

Another market participant rejected demand as the main engine of the strong performance last week, saying, "Demand has stabilized compared to previous months."

In Callao, 0.5%S increased $23, or 5.6%, in the three-day period to $435/mt, its strongest price ever in that port. The 0.5%S started to be assessed in Callao on April 20.

MGO in the Peruvian port rose $25, or 4.9%, to $537/mt, its highest value since $539/mt on March 13.

One market participant said "everything," including global demand and the local market strength, contributed to the increase.

North America East, West Coasts

In New York, retail spot 0.5%S climbed 4.8% for Nov. 23-25. Philadelphia moved similarly, as 0.5%S rose 4.3% over the week. MGO in the two ports strengthened by 6% in New York and 5.2% in Philadelphia. The spread between New York and Philadelphia MGO narrowed from $7 on Nov. 23 to $3 on Nov. 25, with one source putting MGO at parity in the ports.

IFO 380 in Charleston and Savannah weakened, as the ports fell 1.6% and 1.7%, respectively. MGO, however, strengthened on the week, with Charleston climbing 1.7% and Savannah rising 5.2%. To start the week, Charleston MGO was at a $14 premium to Savannah. At the end of the week, the ports were at parity.

Los Angeles MGO rose 7.5% over the week, from $427/mt to $459/mt ex-wharf.

In Vancouver, retail spot 0.5%S climbed $10, or 2.5%, while MGO rose 3.7%. Vancouver retail spot bunkers tracked upward movement in Brent and Singapore bunkers markets.

Seattle 0.5%S remained at a $5 discount to Vancouver for Nov. 23-25. To start the week, Seattle MGO was at parity with Vancouver. Seattle closed the week Nov. 25 at a $5 discount to Vancouver MGO, as demand was heard to be weak.

US Gulf Coast

US Gulf Coast markets entered the week with spot bunkers prices at their highest points since the first quarter, although demand fundamentals remained bearish amid limited spot liquidity. Market sources will be eyeing direction on availability after the holiday-shortened week prior was marked by limits on spot windows.

Spot 0.5%S marine fuel retail pricing continued to rise during the week of Nov. 23-25 to be assessed at $351/mt ex-wharf Houston, up $21, or 6.4%, over the period. In New Orleans, spot 0.5%S retail values was last assessed at $361/mt ex-wharf, up $21, or 6.2%, over the same period.

"Suppliers are tight on [0.5%S] VLSFO," a source said of the Houston market Nov. 25, citing re-supply operations. "Most of them giving estimated delivery dates of Dec. 2 to Dec. 5."

Both 0.5%S assessments entered the final day of November at their highest point since early March.

MGO spot pricing enters the week at $411/mt ex-wharf Houston, up $16, or 4.1%, over Nov. 23-25. In New Orleans, spot MGO pricing sat at $421/mt ex-wharf, up $16, or 4%, over the same period.