In International Shipping News 16/11/2016
High sulfur bunker fuel prices continued to fall sharply Tuesday in Buenos Aires following reports of ample supply and low demand as summer approaches in the Southern Hemisphere.
IFO 380 CST in Buenos Aires was assessed at $302/mt, the lowest price in almost two months and a $20 decline from Monday.
The cost of RMG 380 in Buenos Aires has dropped $58, or 16%, from a recent high of $360 reached on October 31.
“The market has gone down,” a major physical supplier in Buenos Aires said Tuesday. “Poor demand and good avails.”
Tuesday’s decline for marine fuel in Buenos Aires comes after market participants reported last week that warmer weather had led to less demand for fuel oil from power providers.
Refiners have tried to channel that fuel oil into the bunker market to recoup losses, driving down prices, they said.
The summer cruise season, which typical runs from November until early May, could help improve demand, traders said last week.
November is late spring in the southern hemisphere and May is autumn.
While prices for high sulfur fuels have dropped, marine gas oil values have risen due to limited supply, according to a physical supplier.
MGO in Buenos Aires was assessed at $639/mt on Tuesday, up $9 from Monday and a gain up $39.5 from $599.50 on November 10.
Source: Platts
