AMERICAS BUNKERS: Key market indicators Jan. 25-29

Houston — Key spot marine fuel markets throughout the Americas entered the week of Jan. 25-29 under pressure from the US energy complex, while demand fundamentals remained bearish for some regions.

LATIN AMERICA

Latin America bunker prices started the week on a tentative foot after a week of mixed behavior in which domestic fundamentals combined with mild retreats in global oil futures and upstream markets.

In Panama, marine fuel 0.5%S closed the week ended Jan. 22 with a 12 mt, or 2.7%, decline at $433/mt, but not before reaching two days earlier a $446/mt value, its highest since March 6, when it was assessed at $455/mt.

Panama's prices have been supported in the last few days by congestion in the Panama Canal, with authorities pointing to fog, higher-than-average arrivals, additional safety measures against the coronavirus pandemic, global economic recovery and increased traffic of LNG tankers.

"Reality is there is a bottleneck in the Canal," a market source said.

"Upward pressure continues in Panama, as supply is getting squeezed," another bunker source said.

Data from the Panama Maritime Authority showed bunker sales in Panama increased 13.6% month on month in December to 413,230 mt, but the overall 2020 sales volume of 4.74 million mt was 11.4% lower than in 2019.

The port of Buenos Aires saw a firm $12, or 2.5%, hike in 0.5%S last week to $484/mt. The stoppages by agricultural and port workers that held up grain exports in December have now ended and have strengthened the Argentinian market. "Demand is coming well in January," a market source said.

Supply constraints gave a boost to prices in Guayaquil and Cartagena. The Ecuadorean port registered a $6, or 1.2%, increase in 0.5%S to $497/mt.

In the Colombian port, the fuel also advanced $6, or 1.3%, to $470/mt. In the marine gasoil segment, refinery price led to a sharp jump of $8, or 1.5%, in MGO in Cartagena to $553/mt.

The high sulfur bunker fuel kept strong in Balboa, edging down only $1, or 0.3%, to $349/mt, but rose $13, or 4.5%, in Guayaquil to $300/mt. In Valparaiso, it only declined $1, or 0.2%, to $493/mt.

N AMERICA EAST, WEST COASTS

Retail 0.5%S in New York and Philadelphia saw mixed movements over the week ended Jan. 22. New York 0.5%S climbed 0.2%, or $1, while Philadelphia shed 0.5%, or $2. During the week, Philadelphia's premium over New York narrowed from $10 to $7. MGO shed 0.4% in New York and 0.6% in Philadelphia, as the spread narrowed from $5 to $4.

In Charleston and Savannah, MGO declined by 1.2% and 1.0%, respectively. IFO 380 weakened by 0.2% in Charleston and 0.3% in Savannah. However, a source said that they "haven't seen anything on high sulfur on ships in a while."

As Singapore bunkers trended lower at the end of the week, a source said that Vancouver bunkers were "already very low compared with Singapore" and that prices would not decline to the same extent.

Vancouver weakened by 0.5% for 0.5%S marine fuel and by 1.5% for MGO.

Seattle strengthened to a $10 premium over Vancouver on Jan. 19 and maintained this premium throughout the week. Like Vancouver, retail 0.5%S in Seattle fell 0.5% and MGO shed 1.5%.

Los Angeles spot bunkers slightly strengthened during the week. IFO 380 climbed 0.3% and 0.5%S gained 1.1%. MGO saw an increase of 0.4%.

USGC

US Gulf Coast ports entered the final week of January dealing with weak demand fundamentals and pressure from a receding energy complex, with spot pricing trending lower as a result.

Retail 0.5%S marine fuel values came off during the week of Jan. 19-22 to be assessed in Houston at $406/mt ex-wharf, down $4 (1%), while the New Orleans assessment fell to $411/mt ex-wharf, down $6 (1.4%).

The assessments tracked a weaker USGC bulk 0.5%S segment, which came off $2.75/mt, or 0.7%, from Jan. 19-22.

Spot retail 0.5%S pricing entered the week being talked in a wide range as sources point to smaller volumes being done at lower levels by suppliers looking to keep time-chartered barges running.

Likewise, spot MGO pricing fell for both USGC ports to track a weaker crude complex and declining ULSD values.

Ex-wharf Houston spot MGO pricing came off $3, or 0.6%, to $476/mt, while the New Orleans marker fell $5, or 1%, to $481/mt ex-wharf.