In International Shipping News 21/07/2016
Source: Platts
Los Angeles heavy bunker fuel fell to its lowest price level in more than one month as competition between two of the three main suppliers in that port drove prices lower, while the third supplier took advantage of the weak market.
Glencore and Aegean actively lowered offers for IFO 380 in Los Angeles on Wednesday during the S&P Global Platts Market on Close assessment process and transacted with a single buyer, Chevron, at values as low as $208/mt. The market edged up slightly before the close of 2:30 pm EDT and Los Angeles IFO 380 was assessed at $209/mt, the lowest value since reaching $206/mt on June 9, Platts data show.
Prices fell despite an overall increase in the global crude Brent benchmark. The Los Angeles IFO 380-Brent crack at roughly minus $14.25/b Wednesday compared with minus $12.60/b Tuesday. However, Los Angeles bunker fuel appears to have gained some strength relative to the overall oil complex. Since July 1, the crack has averaged minus $13.10/b compared with minus $16.79/b in Q2 and minus $14.45/b in Q1.
Earlier Wednesday, a handful of sources said the Los Angeles IFO 380 market was talked from $236/mt into the $240/mt range — on par with the competing port of Singapore — and as high as $250/mt.
Outside of the Americas, the least-expensive bunker fuel in the world is in the Russian port of Novorossiisk and St. Petersburg, where a favorable tax regime keeps prices significantly lower than in other ports globally.
Source: Platts
