Peru bunker prices climb nearly $20/mt on higher resupply costs
The price of bunker fuel at the Port of El Callao in Peru jumped nearly $20/mt as bunker suppliers received new pricing for resupply from the state-owned oil company Petroperu, market sources said, Platts reports.
"Here, the local market changes with the national refinery," one bunker source said.
A 580 metric ton IFO 380 stem was confirmed done Friday by both parties at $690/mt delivered for January 18. Other sources indicated bunker prices at the same level. Platts assessed IFO 380 in El Callao Thursday at $671/mt.
The increase is a result of tight fuel oil supply in the country, in part due to the ships which transport the resupply from the 62,000 b/d Talara refinery to El Callao being tied up with other operations, sources said. As a result of the delay, one supplier said he may not receive resupply until the end of next week.
A representative with Petroperu was not immediately available for comment Friday. In addition, the cost of fuel oil in Peru has remained lower than international fuel oil prices, bunker sources said. The price is playing a bit of catch up after the residual fuel oil complex increased in the last week, despite prices moving lower Friday, sources said.
"Prices at Callao were way too low," one bunker supplier said. "We have just correct(ed) [the] Callao price according to market levels."
While other bunker markets, such as the Houston, leaped higher with the rise in residual fuel oil in the past week, several bunker markets which compete with Panama remained at lower levels due to the price in Panama not rising as suppliers there competed for a relatively limited amount of demand, market sources said. While prices in Houston Thursday were assessed $10/mt higher than where they began the year, at $623/mt ex-wharf on January 2, prices in El Callao were assessed Thursday $2/mt lower than where they were assessed on January 2, at $673/mt delivered.