AMERICAS BUNKERS: Key market indicators this week

Spot marine fuel pricing was again mixed throughout the Americas, with the week ended Oct. 24 seeing a bearish close, as ports took direction amid limited liquidity and some feedback pointing to shifts in supply fundamentals.

Latin America

Bunker prices in Panama are starting the week on a strong note, supported by a shortage of product, according to market sources. Even when global and US markers fell last week, Balboa experienced solid increases, with marine fuel 0.5%S rising $4, or 1.2%, from Oct. 19 to be assessed at $334 on Oct. 23, S&P Global Platts data showed.

MGO in the same port also rose $4, or 1.1%, to $379/mt last week, while high sulfur bunker fuel has shown the steepest climb, of $13, or 4.5%, to $305/mt, helped by high sulfur fuel oil's stronger cracks.

Bunker fuel sales in Panama continued to rise for third consecutive month in September, albeit at a slower pace, data from the Maritime Authority showed. With 0.5%S responsible for most of the increase, September sales totaled 375,126 mt, a 1.4% advance from August.

Market sources expect sales to be flat-to-lower in October, as it is traditionally a month with more moderate operations.

In Chile, prices firmed for second week in a row, showing the steepest increase in the region for marine fuel 0.5%S. The 0.5%S assessment in Valparaiso rose $9 during the week to $396/mt, the highest increase in the region, and its highest level since reaching $406/mt on Sept. 24.

Cartagena followed suit. The 0.5%S in the Colombia port advanced $7, or 2.2%, to end last week at $325/mt.

Among the countries showing retreats, Callao fell $11 mt, or 2.8%, to $379/mt. In Buenos Aires, the fuel declined $5, or 1.4%, to $345/mt.

Atlantic Coast, West Coast

On the Atlantic Coast, New York and Philadelphia trended lower from Oct. 19-23, moving in line with Brent and ULSD. In New York, 0.5%S fell 1.2% from $333/mt to $329/mt ex-wharf. Philadelphia started the week at $340/mt ex-wharf but declined by 1.5% to $335/mt ex-wharf to close the week. The spread between New York and Philadelphia narrowed to $6, as 0.5%S supply was heard to be tight in New York and limited the downward movement in the port.

MGO in the two ports also trended lower over the week. New York declined by 2%, while Philadelphia fell by 1.7%. To start the week, MGO in Philadelphia was at a $4 premium to New York. This spread widened to $6 to end the week.

Charleston and Savannah continued to be very busy from Oct. 19-23. IFO 380 in both ports declined significantly. On Oct. 19, Charleston was assessed at $346/mt ex-wharf but ended the week 2.9% lower at $336/mt ex-wharf. Savannah fell 4.7%, or $16, to end the week at $323/mt ex-wharf.

MGO in the area trended lower as well, however, it did not experience as sharp a decline. In Charleston, MGO shed $6, or 1.5%, to close the week at $386/mt ex-wharf. Savannah had a similar downward movement, as the port fell 1.6% from $365/mt to $359/mt ex-wharf.

On the West Coast, spot 0.5%S supply in Vancouver was heard to be tight into the first or second week of November. Vancouver started off the week at $316/mt ex-wharf but rose 6% to end the week at $335/mt ex-wharf. Increased demand is likely the cause of the tight supply, according to a regional source. The source cited congestion, in addition to a limited number of suppliers in the area, as factors contributing to the lack of supply.

MGO in the port also climbed over the week but not to the same extent as 0.5%S. Vancouver was assessed at $389/mt ex-wharf on Oct. 19 and rose 2.8% to close the week at $400/mt ex-wharf.

Movements in Seattle tracked those in Vancouver. In Seattle, 0.5%S rose 5% from $319/mt to $335/mt. To start the week, Seattle was assessed at a $3 premium to Vancouver, however, at the end of the week, the two ports were at parity. Like Vancouver, MGO in Seattle climbed 2.8% to end the week at $403/mt. Seattle maintained a $3 premium to Vancouver over the week.

USGC

US Gulf Coast bunkers markets enter the final week of October with no more direction than the beginning of the fourth quarter, as demand destruction continues to be felt and spot values talked in a wide range based on volume sizes for 0.5%S retail stems. Market feedback in the week of Oct. 19-23 again pointed to deep discounts for smaller retail 0.5%S volumes, as some suppliers were heard going lower while recouping lost ex-wharf value via lump-sum freight costs for time-charter barges.

In Houston, spot 0.5%S pricing rose just $2/mt, or 0.7%, from Oct. 19-23 to close the week at $292/mt ex-wharf, although pricing jumped to $321/mt ex-wharf at mid-week on a trade in the Platts Market on Close assessment process. In the days that followed, market participants continued to talk value around $300/mt ex-wharf of lower, with some feedback putting prices in the "sub-$290s/mt."

Market participants enter this week with an eye on spot availability following talk of some tightness, particularly for larger spot stems, a supplier source said. Additionally, some support for higher spot pricing could come from upstream sectors, with another supplier source saying resupply costs were on the rise late last week.

The New Orleans market showed more of an overall bullish trend last week, as 0.5%S retail value rose $8, or 2.7%, from $299/mt to $307/mt ex-wharf over the same period.

Marine gasoil, or MGO, spot pricing in Houston closed last week at the same level it opened -- $360/mt ex-wharf –- while New Orleans pricing rose $6, or 1.6%, from Oct. 19-23 to close the week at $373/mt ex-wharf.

Spot MGO values were talked more consistently in a narrow range, with sources putting value floors in the $360s for both markets amid stable delivered pricing from MGO-only suppliers. Those levels were heard acting as a baseline for USGC suppliers who do the majority of their business on a combination basis for 0.5%S and MGO stems.