Americas News
New Orleans Sees Price Spike on Bunker Fuel Shortage
New Orleans last week saw bunker prices spike relative to both Houston and general crude prices, with sources telling Platts it was due to a shortage of product.
Ship & Bunker data shows IFO380 bunkers in New Orleans rose from $164.50 per metric tonne (pmt) last Tuesday, their lowest in several years, to $194 pmt Friday.
Gulf Coast bunker suppliers are reported to have said that low supplies would persist into this week.
One Gulf Coast trader is reported to have suggested that supply could arrive as early as Sunday, but noted that "this may be a little too optimistic."
"More likely it's Monday, December 21, and then hopefully things begin to return to normal," they added.
While there were some reports of indications as high as $273 pmt last week, some were also reported to be offering product more than $100 pmt less than that.
"Don't think everyone is tight on fuel in Nola as I heard some levels as low as $170 pmt," one Gulf Coast supplier is reported to have said.
"Heard one supplier there might be 'dumping' in order to drop inventories before year-end," they added.
In August, it was reported that New York IFO380 prices had reached an almost 5-month low of $306 pmt, according to Ship & Bunker data, with demand for the 380 cSt RMG product weak due to interest in higher viscosity RMK material.
