Bunker fuel prices in Valparaiso, Chile, climbed Tuesday to its highest level in almost a year on firm buying interest coupled with a hike in fuel oil prices by Chilean refiner ENAP.
High sulfur bunker fuel was assessed at $344/mt delivered, an increase of $3 from Monday.
The assessment was the highest since September 9, 2015, when it was at $345/mt delivered, according to S&P Global Platts data.
So far in 2016, the average price has been $294/mt delivered, Platts data show.
Tuesday price indications from the two bunker suppliers in Valparaiso were talked around $330-352/mt delivered, amid firm demand even after state-owned ENAP increased $30 its posted price week over week.
ENAP is the sole supplier for the Chilean bunker market. Sources say the refiner’s posted price lags international oil price increases and is based on an algorithm that includes US Gulf Coast fuel oil and diesel prices, among other factors.
In addition to the hike in feedstock prices, high swells at the port of Valparaiso have put pressure on prices as suppliers have been unable to load product.
“Even with those conditions, we have sold good volumes of bunkers this week in the spot market because we still have demand from buyers unable to resupply in Peru or Ecuador,” one of the suppliers said.
Although a port condition report released by the Chilean Army Tuesday showed the port of Valparaiso as open, it also released a special warning on high swells between Sunday and Tuesday.