Americas News
Houston VLSFO Prices Decline Relative to Top Bunker Hubs
Houston has lost its place as the most expensive of the top four bunkering hubs for very low sulfur fuel oil (VLSFO), according to Ship & Bunker pricing.
Houston's VLSFO prices overtook Singapore and Fujairah on Feburary 21, and rose to a premium of as much as $51.50/mt by March 10.
Houston has now declined to the second-cheapest of the top four, with Rotterdam still below the Texan hub; VLSFO at Houston was at a $33.50/mt discount to Fujairah's levels by Tuesday.
The move may reflect a decline in port activity in the US Gulf as the intensity of the COVID-19 pandemic increases in the US while declining in Asia.
The crude price collapse since early March has delivered a sharp decline in crack spreads for VLSFO across the world, as well as a narrower spread between VLSFO and high sulfur fuel oil.
