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AMERICAS BUNKERS: Key market indicators this week

Spot retail bunkers prices throughout the Americas enter the week of Nov. 8 on an upswing amid support from key energy indicators, while weather and supply fundamentals could continue to impact operations in the short-term for some ports.

Latin America

A bullish mood in oil global markets presages strengthened pricing in Latin America bunker markets at the start of the week, adding to the increases seen in the week ended Nov. 7 in most of the region.

The rising trend might continue along with renewed firmness in the futures markets, as uncertainty has subsided around the US election with Democrat Joe Biden declared winner, and with Pfizer announcement of a coronavirus vaccine more than 90% effective.

In Panama, marine fuel 0.5%S climbed $17 (5.7%) from Nov. 2-6 to $317/mt. Waves and high winds, an indirect effect of Hurricane Eta, led to terminal closures in the middle of the week and a backlog of bunker deliveries in the port of Balboa, supporting prices. Marine gasoil in the port advanced $10 (2.8%) to $370/mt.

“Everything is getting behind,” a market source said Nov. 6, adding bunker deliveries could be affected seven to 10 days forward. “Ships pile up, waiting.”

In Brazil, the port of Santos saw the highest increase during the week in the 0.5%S segment, of $32 (10.7%) to $331/mt. MGO rose $13 (3.1%) to $429/mt.

Brazil’s National Petroleum Agency reported last week a 2.6% on the year increase in September for exports of bunker fuel and fuel oil to 3.473 million barrels. However, September’s bunker fuel and fuel oil exports dropped 30.6% from 5.004 million barrels in August.

In Argentina, marine fuel 0.5%S rose $15 (4.7%) to $335/mt in the port of Buenos Aires, while MGO climbed $11 (2.5%) to $455/mt. Market sources said there has been a slight increase in demand. “Luckily it has risen a little bit, but it is part of the season. Let’s see what happens this summer without cruise ships.”

The 0.5%S rose $9 (2.9%) in Cartagena, Colombia, to $324/mt, and $6 (1.6%) in Callao, Peru. However, some ports registered a slight decline in value. The fuel fell $7 (1.8%) in the Chilean port of Valparaiso to $388/mt and $3 (0.8%) in Guayaquil, Ecuador, to $354/mt.

North America Atlantic, West coasts

On the Atlantic Coast, marine fuel 0.5%S increased by 3.9% in New York and by 3.8% in Philadelphia. Supply in New York was heard to be tight, as suppliers aim to deplete inventories prior to the year end, according to a regional source.

MGO in New York and Philadelphia climbed 1.8% and 2.6%, respectively. The spread between the two ports widened from $2 to $5. Philadelphia was talked at a $5 premium to New York for both marine fuel 0.5%S and MGO.

In Charleston and Savannah, IFO 380 strengthened by 1.7% and 2.8%, respectively. MGO increased more significantly, as it rose by 7.1% in Charleston and by 9.4% in Savannah.

On the West Coast, additional support for retail spot bunkers came from bullish markets in Singapore.

In Vancouver, marine fuel 0.5%S and MGO supply has been tight. According to a regional source, supply for marine fuel 0.5%S is expected to improve early this week, after being extremely tight the past few weeks. MGO supply will likely remain tight for a few more weeks, the source said.

Marine fuel 0.5%S climbed 9.1% in Vancouver and 7.5% in Seattle. MGO strengthened by 12.1% in Vancouver and 10.9% in Seattle. Strengthening prices in Vancouver were due to the supply tightness.

Seattle was talked flat to Vancouver on Nov. 2. To close the week, however, Seattle was talked at a $5-$8 discount to Vancouver.

USGC

Key retail bunkers ports along the US Gulf Coast saw pricing trend higher to open November, entering this week riding a bullish kick on support from upstream energy futures markets despite weak demand.

Houston pot MGO pricing rose $15 (4.5%) from Nov. 2-6 to be assessed at $350/mt ex-wharf, while New Orleans pricing climbed $20 (6%) to $355/mt ex-wharf.

Retail 0.5%S spot pricing climbed four straight sessions from Nov. 2-5 on support from rising crude futures, before receding slightly to close the week Nov. 6 as demand was talked down.

Houston retail 0.5%S rose $15 (5.6%) from Nov. 2-6 to enter this week at $285/mt ex-wharf, while New Orleans value rose $10 (3.6%) to $290/mt ex-wharf.

“I am trying to push things up … but 280s are trading,” a local source said of the Houston market.

Another source pointed to election uncertainty keeping demand in check, saying “lots of volatility today so I think buyers are staying away until things settle post-election results.”
Source: Platts

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