In International Shipping News 17/04/2015
The price of high sulfur bunker fuel in the port of Montevideo, Uruguay, rose Wednesday to its highest premium over the same product in the competing port of Buenos Aires, Argentina, since February, based on Platts assessments.
In Montevideo, IFO 380 was assessed at $434.50/mt delivered, $4.50 higher than Tuesday, due to stronger fuel oil prices, a lack of product and firm demand.
At Buenos Aires, IFO 380 CST grades were assessed at $390/mt delivered, down $14, based on price indications, abundant supplies and poor buying interest.
The assessments put high sulfur bunker fuel in Montevideo at a premium of $44.50/mt over the same product in Buenos Aires, the highest premium since February 20 when it was $47/mt, according to Platts data.
Year to date, the average premium has been $1.38/mt, Platts data showed.
In the last few days, Uruguayan bunker fuel suppliers have not provided price indications to their clients due to the lack of product.
According to the suppliers, ANCAP’s La Teja Refinery has limited fuel oil supply to the bunker market, diverting its output to the state-owned power company UTE.
On Wednesday, market sources said a large physical supplier in Buenos Aires sold 850 mt of IFO 380 CST at $390/mt delivered for April 20 to a Uruguayan trader.
The deal was confirmed by both parties involved, but they asked not to be identified.
Source: Platts