High sulfur bunker fuel rose to yearly highs in three South American ports on Wednesday amid reports of limited product and higher costs from state refiners, even as the overall oil complex weakened.
IF0 380 CST in the port of Callao, Peru, was assessed up $4 to $364/mt, in Valparaiso, Chile, up $4 to $395/mt, and up $5 to $363/mt in Guayaquil, Ecuador, all based on indications. Market participants said the increases, which came on a day when Brent crude and US Gulf Coast HSFO fell sharply, were due to a combination of factors including summer weather in the Southern Hemisphere.
Availability is "super tight," one trader active along the western coast of South America said Wednesday. "Summer started and now power plants are consuming more fuel."
In Callao, where Wednesday's assessed price was the highest since hitting $367 on August 24, 2015, two suppliers have said they are out of product as they wait for resupply from Petroperu.
Two suppliers in Guayaquil, Ecuador, also said they were out of product.
"We are expecting to be able to load on December 18," one of the suppliers said.
In Valparaiso, Wednesday's assessed price was the highest since hitting $397/mt on July 24, 2015. One physical supplier in Valparaiso reiterated Wednesday that the price increases are due to higher costs from the state refiner, ENAP.
