Americas News
No Floor in Sight as New York MGO Prices Slide to Multi-Year Low
MGO prices in New York Monday slid to a multi-year low of $534.50 per metric tonne (pmt), data from Ship & bunker shows.
Market sources said that there was currently ample supply in the port, and prices were set to fall further as a result, according to reports.
Ship & Bunker data shows the product has fallen $434 pmt over the last 12 months, from a high of $973 pmt.
Thanks to the introduction of the January 1, 2015 0.10 percent sulfur cap on marine fuel used within the North American Emission Control Area (ECA) demand for the product has increased significantly in that time, with one East Coast trader putting the increase at "about 100 percent."
However the increase in demand has still failed to match available product, and sources said "fierce competition" along the Atlantic Seaboard was now driving down prices.
"[I am] surprised everyday when I see a quote on the numbers, some are trying to keep the numbers up, while others almost give it away," a source said.
"Fundamentals are horrific, supply is too high...refineries still banging even though crack spreads have collapsed 30 percent, only going to get worse, unfortunately," a separate New York-based source said.
Earlier today Ship & Bunker reported there had been renewed analyst prediction that oil, and by association, global bunker prices, are set to fall further before they head much higher.
