AMERICAS BUNKERS: Key market indicators Feb. 1-5

Spot marine fuel markets throughout the Americas have seen pricing fluctuate with global energy futures while demand fundamentals remain mixed.

LATIN AMERICA

Latin America bunker prices start the week on a steady foot, following a mixed but mostly stable week in futures and wholesale global prices.

In the marine fuel 0.5%S segment, Balboa retreated slightly by $3 (0.7%) to $432/mt ex-wharf in the last week in January. While transit through the Panama Canal continued to be slow over the week, the port was still experiencing supply constraints.

"Despite delays, there is plenty of fuel and barges around," a market source said.

"Supply is tight on the US Gulf Coast as well as in Panama and Los Angeles," another source said.

On the opposite side, the port of Santos rose $3 (0.7%) to $446/mt, while Buenos Aires edged up $1 (0.2%) to $476/mt.

"The week was generally quiet," one bunker source said of the Argentinian market, with others concurring. "But it has not returned to normalcy," the source added.

Valparaiso continued to add value and rose $2 (0.4%) to $541/mt, getting closer to Montevideo, traditionally the most expensive port in South America, which fell $1 (0.2%) to $542/mt.

The strongest advance was experienced by Callao. The Peruvian port rose $5 (1%) to $490/mt amid more solid demand.

"We can't complain," a market source said.

In Colombia, demand was low in Cartagena with persistent supply constraints, a market source said. The 0.5%S fell $3 (0.6%) in that port last week to $465/mt.

In Guayaquil, the fuel dropped $4 (0.8%) to $495/mt. While there has been an uptick in demand in Ecuador, the weather hindered some national fuel loadings, market sources said, although imports of 0.5%S continued to arrive.

In the high sulfur bunker fuel segment, which the International Maritime Organization now only allows to be used in ships with scrubbers, the three main ports in Latin America for this market saw declines.

In Balboa, high sulfur IFO 380 fell $6 (1.7%) to $346/mt. In Valparaiso, it retreated $2 (0.4%) to $502/mt, and in Guayaquil it dropped $7 (2.3%) to $292/mt.

NORTH AMERICA EAST, WEST COASTS

In New York and Philadelphia, retail 0.5%S marine fuel strengthened by 2.3% and 1.8%, respectively. MGO in the region increased by 0.8% in New York and by 1.0% in Philadelphia. At the start of the week, Philadelphia was at a $7 premium for 0.5%S and a $4 premium for MGO. To end the week, Philadelphia was at a $5 premium for both 0.5%S and MGO.

MGO in Charleston and Savannah saw mixed movements over the week. In Charleston, MGO decreased by 0.6%, while it increased by 0.4% in Savannah. The spread between the two ports narrowed from $6 on Jan. 25 to $1 on Jan. 29.

A source said there was no IFO 380 in Charleston and Savannah.

Vancouver 0.5%S increased by 2.2%, while MGO climbed 0.4%.

On Jan. 29, a regional source said that demand was "still booming" in Vancouver but pointed to a motivated seller keeping values lower.

Seattle continued to be talked at a $10 premium to Vancouver. Retail 0.5%S and MGO climbed by 2.1% and 0.4%, respectively, in Seattle.

In Los Angeles, MGO also increased by 0.4% over the course of the week.

USGC

Along the US Gulf Coast, spot bunkers pricing entered February relatively rangebound as weak demand fundamentals remained while direction has come from movements in the US energy complex.

Spot 0.5%S marine fuel retail assessments ended the week of Jan. 25-29 down $4 (1%) in Houston at $404/mt ex-wharf, but the New Orleans price moved up $1 (0.2%) to $414/mt ex-wharf over the same period.

MGO spot pricing in Houston rose $2 (0.4%) to $480/mt ex-wharf from Jan. 25-29, and the New Orleans assessment rose $6 (1.2%) to $489/mt ex-wharf.

The spread between the two ports has contracted in recent weeks, with some sources putting the difference at closer to $5 than $10.

Additionally, talk of lower spot pricing for smaller volumes in Houston has started to emerge again, with sources pointing to limited liquidity in recent days.