Houston high sulfur bunker fuel falls to lowest level in over a year

The high sulfur bunker fuel price in Houston dropped to its lowest level in over a year Thursday as a result of competition between suppliers for business and weak demand.

IFO 380 CST Houston was assessed at $563/mt ex-wharf, down $12/mt from Wednesday, the lowest level since June 26, 2013, when it was assessed at $564.50/mt ex-wharf, according to Platts data. So far in 2014, the average price has been $590.80/mt ex-wharf.

Thursday’s assessment was based on indications from bunker suppliers at $564/mt ex-wharf, and a considerable fall on Brent crude values. The front-month Brent crude contract was assessed by Platts at $102.10/b at 3:15 pm EDT (1915 GMT), a fall of $2.80/b, equivalent to a decline of $17.78/mt.

Although summer tends to be slow in the US Gulf Coast bunker market, the slide in prices in Houston in recent weeks has attracted buyers from other markets.

Some Colombian physical suppliers say they have lost some vessels this week due to the competitive prices in Houston. IFO 380 CST Cartagena was assessed at $608/mt delivered Thursday, down $2/mt from Wednesday.
Source: Platts