Bunker fuel prices in Buenos Aires dropped to the lowest level in over two months Thursday on strong supplier competition for business and abundant supplies.
IFO 380 in the Argentinian port was assessed $14 lower to $334/mt delivered, based on price indications, the lowest since June 7, when it was assessed at $332.50/mt delivered.
So far in 2016, the average price has been $280/mt delivered, according to S&P Global Platts data.
“Cammesa lowered considerably its [fuel oil] consumption,” a physical bunker supplier said.
During the winter season in the Southern Hemisphere, Argentinian oil refiners YPF, Shell and Axion sell most of their fuel oil production to state-controlled power company Cammesa, leaving only low volumes for the bunkering business.
According to several market sources, in recent weeks a warmer winter than was expected has diminished Cammesa demand.
On Thursday, market sources said offers from refiners were talked around $290/mt.
“I have to drop prices because we need to get rid of some product,” one of the physical suppliers, who asked not to be identified, said.
A deal for 550 mt of IFO 380 CST was heard done in Buenos Aires at $288/mt for August 14-18 Thursday, but could not be confirmed with the parties involved.
In the neighboring port of Montevideo, Uruguay, IFO 380 was assessed at $414/mt delivered, $6 lower than on Wednesday, based on price indications and similar circumstances to those across the River Plate in Buenos Aires.
State-owned oil refiner ANCAP nominated additional volumes of fuel oil for the bunker market last weekend, as demand from power companies has diminished due to heavier rains due to El Nino.
So far in August, the high sulfur bunker fuel average price in Montevideo has been $441/mt delivered, according to Platts data.
Source: PlattsPrevious Next