AMERICAS BUNKERS: Key market indicators Nov. 23-27

New York — Spot bunkers markets in the Americas started the week Nov. 23-27 on mixed directions, with some expectations for changes to demand fundamentals.

Latin America

Latin America bunker markets entered with cautious optimism after remaining rangebound for several days.

Most of the ports have experienced timid increases, tracking stronger advances in global oil markers, which have been treading between encouraging news on the eventual availability of COVID-19 vaccines and persistent suppressed demand in the short-term due to the pandemic.

Marine fuel 0.5%S in Balboa was almost unmoved, edging down only $1, or 0.3%, in the most recent week to be assessed at $349/mt on Nov. 20. Operations started to normalize in Panama at the end of the week after several days of a backlog in bunker loadings caused by a closure of terminals.

The suspension of small vessel operations in Panama's ports was caused by strong winds and high waves left by Hurricane Iota the week ended Nov. 20 and Hurricane Eta in early November as they wreaked havoc in several Central American countries north of Panama.

A market source said demand suddenly shot up on Nov. 20 as buyers tried to take advantage of low margins caused by the closures.

"Supply was very tight because barges hadn't been able to load and prices were very high," a market source said. "After four days of being closed, terminals with tanks on the Pacific finally opened to allow the loading."

In Argentina, the 0.5%S also remained in the low $380s/mt the week ended Nov. 20, and was assessed in Buenos Aires at $383 on Nov. 20, up $1, or 0.3%, on the week. The market expected firmness in the days ahead, however, as demand seemed to be strong, aided by bulk carriers of agricultural products and power utility Cammesa buying fuel oil.

While supply in Ecuador seemed to be facing constraints, according to an Andean source, demand in Peru looked stronger in the last two days of the latest week. The 0.5%S in Guayaquil rose $3, or 0.8%, to $390/mt during the week and increased $2, or 0.5%, to $402/mt in Callao.

North America Atlantic and West Coasts

On the Atlantic Coast, spot retail 0.5%S gained 1.4% in New York and 0.8% in Philadelphia. The spread between the two ports narrowed from $7 on Nov. 16 to $5 on Nov. 20. According to a regional source, New York 0.5%S availability was tightening, with a 0.5%S barge going into drydock.

MGO in New York and Philadelphia climbed 3.7% and 5.3%, respectively, with the spread widening from $1 to $7 over the course of the week.

In Montreal, truck availability was heard to be tight throughout the week.

"It's just the usual this time of year. It's busy," a source said.

IFO 380, 0.5%S, and MGO increased 3.0%, 2.5%, and 4.8%, respectively.

West Coast retail spot bunkers took additional direction from Singapore markets.

In Vancouver, supply for both 0.5%S and MGO was stable, according to a source. Demand, however, was heard to be weak, as the source said buyers were scarce.

Retail 0.5%S shed 1.5% in Vancouver. While MGO only shed 3.7% over Nov. 16-20, it fell $30, or 5.8%, on Nov. 19, after rising steadily at the beginning of the week. A source commented that a supplier "crushed 0.5 and MGO."

In Seattle, 0.5%S and MGO fell 0.3% and 1.2% respectively. To start the week, 0.5%S and MGO were at a $10 discount and $5 discount, respectively, to Vancouver. At the end of the week, 0.5%S was at a $5 discount, while MGO was at an $8 premium to Vancouver.

Both 0.5%S and MGO in Seattle decreased significantly on Nov. 19, like Vancouver, as prices were heard to be significantly weaker from the day prior. Prices rebounded on Nov. 20. The rebound, however, was not to the same extreme as the fall.

USGC

Key US Gulf Coast ports entered the week of Nov. 23-27 with spot prices on an upswing despite talk of soft demand, with support coming from a stronger crude complex and rising diesel futures. Spot liquidity continued to be weak amid ongoing demand destruction tied to the global pandemic, although some sentiment has pointed to activity picking up ahead of US markets closing for the Thanksgiving holiday Nov. 26-27.

"I would think you see some pick up at some point once the world remembers US closed Thursday [and] Friday," a local source said.

Spot retail 0.5%S pricing rebounded to $315/mt ex-wharf Houston and $330/mt ex-wharf New Orleans on Nov. 20 after trending lower for much of the week. Overall, the Houston market saw spot value shed $6, or 1.9%, for the Nov. 16-20 period, while New Orleans gained $1, or 0.3%, during that time.

MGO spot pricing in both ports showed a more pronounced bullish sentiment on the strength of a Nov. 20 rebound, to be assessed at $390/mt ex-wharf Houston and $397/mt ex-wharf New Orleans. For Houston MGO, the Nov. 20 assessment was the highest since a close of $395/mt on March 10, while the New Orleans marker on Nov. 20 fell just $1 shy of reaching an eight-month high – which it did just two days earlier.