In International Shipping News 05/10/2016
The price of Houston high sulfur marine fuel reached its highest level since July 30, 2015, as supplies of on-spec US Gulf Coast product tightened, bunker fuel suppliers said Tuesday.
Houston IFO 380 CST was assessed at $258/mt ex-wharf, up $5, following market trading levels talked at $255-$264/mt ex-wharf.
The pricing level is at its highest since July 30, 2015, when it was $267/mt ex-wharf, S&P Global Platts data showed.
Some of the USGC HSFO available for resupply had high metals content, and therefore on-spec product has tightened, the suppliers added.
Subsequently, the cost to blend on-spec IFO 380 has increased, which also helped support prices, the sources added.
“IFO 380 CST is USGC HSFO plus $1.60/b right now … $10/mt,” one Houston bunker supplier said.
The source added that some suppliers may have misjudged the market and are making up for those losses.
“If you sold the last few days you took [a loss],” the supplier said.
HSFO is the main component of IFO 380 CST and is widely considered to be the leading indicator of the cost of IFO 380.
USGC HSFO was assessed at $39.09/b, or $250.18/mt ex-wharf, on Tuesday.
Source:Platts
