AMERICAS BUNKERS: Key market indicators Dec. 7-11

Spot bunkers markets enter the week Dec. 7-11 on an overall bullish kick despite ongoing weak demand trends, with a stronger global crude complex providing underlying support as some ports started to show signs of life.

LATIN AMERICA

Marine fuel 0.5%S in Latin America enters the week with renewed firmness after double-digit price increases in most key ports, which were supported not only by an uptrend in global oil values but also by intensified activity in the region.

Values in Panama, Argentina, Brazil and Chile reached last week March levels, while hiking in Peru and Ecuador to record prices, to their highest since S&P Global Platts started to assess ports in those countries on April 20.

Marine fuel 0.5%S in the key hub of Balboa rose $17/mt (4.5%) in the week from Nov. 30 to Dec. 4, to reach $392/mt. It was its highest price assessment since March 6, when it was valued at $455/mt.

Although demand was seen a tad lower last week in the Panamanian port, prices were up after an OPEC+ production agreement.

"We are re-offering higher now due to Brent and ICE (gasoil) up," a market participant said.

On the supply side, although it has strengthened, constraints might be seen this week as many suppliers have already fixed several stems, a bunker trader said.

In Santos, the IMO-compliant fuel closed last week at $390/mt, a $14 (3.7%) increase during the week and its highest level since $425/mt on March 5.

In Buenos Aires, a steady strong demand helped 0.5%S prices reach $399/mt at the beginning of last week, a level last seen on March 18. However, they ended the week $1/mt below, at $398/mt.

"(Bunker) requests have increased," a market participant said, adding they are expected to remain high during December due to the wheat harvest.

In Valparaiso, the fuel gained $18 (4.2%) to $448/mt. Not since March 27, the Chilean port had seen a higher value, of $457/mt.

The 0.5%S in Callao, first assessed on April 20 at $360/mt, reached a historic record of $440/mt on Dec. 4, with an increase of $10 (2.3%) during last week. "Lots of action," a source said.

In Guayaquil, the advance was of $38 (9.7%) to $429/mt, also an all-time high. Imported supply of the fuel has just started to come back to Ecuador.

In Cartagena, Colombia, VLSFO rose strongly $19 (5.4%) to $374/mt, but last time it was highest was only in September, when it was assessed at $375/mt.

NORTH AMERICA EAST, WEST COASTS

In New York and Philadelphia, retail 0.5%S strengthened 4.6% and 4.5%, respectively, as both ports gained $17 from Nov. 30 to Dec. 4. Over this period, MGO rose by 2.6%, or $11, in both New York and Philadelphia. Philadelphia maintained a $10 premium for 0.5%S and a $3 premium for MGO during the week.

Montreal retail spot bunkers climbed by 1.4% for IFO 380, 1.9% for 0.5%S, and 3.0% for MGO.

IFO 380 strengthened by 3.8%, or $14, in Charleston. According to a source, supply in Charleston was very tight, but the source expected the tightness to be temporary. Savannah saw a less significant gain, as IFO 380 moved 1.1% higher over the week.

MGO climbed 7.6%, or $32, in Charleston, while Savannah gained 7.1%. To start the week Nov. 30, Charleston and Savannah MGO were at parity. On Dec. 4, Charleston was at a $2 premium to Savannah.

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

In Los Angeles, MGO strengthened by 4.6%, or $21.

Demand in Vancouver was weak to start the week beginning Nov. 30. At the close of the week, demand was "slightly better," according to a regional source. Both retail 0.5%S and MGO climbed 2.0% in Vancouver.

Seattle saw gains of 4.6% for 0.5%S and 4.1% for MGO. To start the week, Seattle was at a $5 discount to Vancouver. To end the week, however, Seattle moved to being at a $5 premium. This change from being at a discount to being at a premium was likely due to availability, a source said.

USGC

Along the US Gulf Coast, spot bunkers pricing continued to rise during the week of Nov. 30-Dec. 4 on support from a stronger energy complex, which in turn propped up wholesale markets relevant to the marine fuel segment.

Spot retail 0.5%S marine fuel pricing rose $5 in both USGC ports to be assessed at $355/mt ex-wharf Houston and $365/mt ex-wharf New Orleans, a gain of 1.4% for each assessment.

Demand fundamentals continue to be a focus for the region as a whole, with low vessel rates heard to be a problem for Houston.

"They are low, so not worth it for us to bring them there," a source said. "We're fixing more TA routes because the market is apparently [bad] in Gulf."

In New Orleans, pricing has been talked in a wide range due to demand, with at least one supplier heard being "aggressive" in the 0.5%S segment.

Spot MGO pricing in Houston climbed $13/mt (3.2%) over the period to enter this week at $423/mt ex-wharf, while the New Orleans assessment rose $14/mt (3.3%) to price at $434/mt ex-wharf.