AMERICAS BUNKERS: Key market indicators April 26-30

Houston — The pricing for marine fuel 0.5%S in the Americas has followed the mild decline seen in the last few days in global oil prices. However, in the marine gasoil segment, some Latin American ports have ignored the trend, showing solid increases.

This week, bunker prices in the Americas will continue to follow the path set by global oil pricing, while constraints in demand seen at several key ports remain a factor, sources said.

Latin America

In Panama, marine fuel 0.5%S fell $6 from April 19 to April 23 to end the period at $504/mt ex-wharf in Balboa, in tandem with a 1.3% fall in ICE prompt-month Brent to $66.11/b.

Bunker sources described the Panamanian market as busier last week with two contrarian forces at play: a demand that is still slow against a costlier and also slow resupply, as well as more expensive freight. "In general, it's very bullish in Panama," a market source said.

In Cristobal, on the Atlantic Coast of Panama, availability of 0.5%S was scarce due to reduced supply from one of the small number of companies servicing that port on the Atlantic Coast, according to a bunker source. Pricing in Cristobal, traditionally similar to Balboa's, showed last week a premium of between $10 to $15 over Balboa.

The Latin American port that showed the strongest retreat last week was Santos, as the Brazilian port fell $12, or 2.4%, to $495/mt.

In Argentina, the 0.5%S market fell $4 to $516/mt in Buenos Aires. Demand at the port is still strong, supported by agricultural exports, but global energy prices are still pressuring values, market sources said.

In Peru, participants reported an increase in operations with 0.5%S retreating only $1 to $568/mt in Callao.

The fuel in Cartagena declined in the same proportion and was assessed at $524/mt. Demand continues to be "very weak" in the Colombian market, a participant said.

Avoiding the trend, Valparaiso's 0.5%S bunker market rose $18 to $612/mt last week, its highest value since March 30, when it was priced at $622/mt. This was after the soft advance the Chilean port experienced the previous week, when most other key Latin American ports showed strong advances.

In the marine gasoil segment, the Santos market jumped $15, or 2.3%, to $659/mt, its highest price since $680/mt on March 24. Brazil has continued to implement its policy to keep domestic refined product prices at parity with imports, leading to heftier diesel and MGO prices in 2021.

North America

On the US Gulf Coast, all bunker segments saw retreats from April 19 to April 23, as the region continues to grapple with capped demand.

Marine fuel 0.5%S in Houston dropped $3 to $479/mt, and in New Orleans it declined $8 to $489/mt.

"Low demand is probably the biggest factor," a market source said.

The wholesale market for 0.5%S fuel on the Gulf Coast also influenced the movement, after shedding $9.25 to $468.50/mt.

Meanwhile, marine gasoil in Houston declined $8 to $547/mt, while at the Louisiana port it dropped $3 to $567/mt.

"The limited demand has a greater effect on Houston than NOLA (New Orleans)," the source said, explaining that due to the higher number of suppliers at the Texan port, they are under more pressure to move their barges and thus they are compelled to offer more competitive pricing.

High sulfur bunker fuel at both ports fell $3, to $377/mt in Houston and $387/mt in New Orleans.

US West Coast bunker prices retreated last week even with a positive wave from Singapore wholesale segments on April 23. Vancouver ex-wharf 0.5%S marine fuel fell $3 to $516/mt, with a similar decline in Seattle to $526/mt.

US Atlantic Coast ports also fell during the week, with 0.5%S in New York shedding $7 to $499/mt.