High sulfur bunker fuel in Los Angeles hits 3-year low
Time：2014-06-16
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Platts assessed IFO 380 CST Los Angeles at $508.50/mt ex-wharf on Friday, a $25.50 drop from Thursday based on activity during the Platts Market on Close assessment process.
OW Bunkers offered 1,000 mt of RMG 380 CST to be delivered June 20. The offer was accepted by World Fuel Services at $514/mt ex-wharf, and Platts confirmed the trade. OW Bunkers then re-offered down to $509/mt ex-wharf, it’s lowest level in more than three-and-a-half years. High sulfur bunker fuel in Los Angeles was last assessed lower on November 30, 2010, when the product hit $504/mt ex-wharf, Platts data show.
Friday’s fall is the six such drop since late March for high sulfur bunkers in LA, where competition has escalated since Denmark-based OW Bunkers became the market’s third major supplier in May.
Ample supplies and increasing competition from bunker fuel in Far East Russia, which can routinely run at a $100 discount to the US West Coast, has also driven down prices in Los Angeles in recent months, sources said.