US bunkers down on weaker Brent/WTI spread, fuel oil: suppliers

New York (Platts)--4Mar2011/542 am EST/1042 GMT


US bunkers eased Thursday from recent highs as crude and fuel markets softened, market sources said.

"A couple of ships [were shown] out there late in the day, and there is some overnight business showing," said one US West Coast supplier. "There seems to be a case of nerves, as the Brent/WTI spread comes in," the source added, noting the uncertainty in oil markets in general.

Thursday's Brent/WTI spread was $12.88/b, compared to $15.79/b on March 1.

Los Angeles 380 CST was assessed Thursday at $648/mt ex-wharf, down $9 from Wednesday. Only one stem was reported sold in Los Angeles, which typically averages three to five stems reported in the spot market. PDI said it sold 1,250 mt at $646/mtw for March 9 delivery.

"[Bunkers] have only come off a few bucks from what I see," said one East Coast supplier. "It is because the crude and fuel markets came off a bit."

He added that "looking forward, there is [no resupply] coming in, so supply will be very tight."

New York Harbor was assessed Thursday at $636/mtw, down $7 from Wednesday, but the spread between 380 CST and resupply indicator 3% sulfur fuel oil in New York Harbor remains at a healthy $14.779/mt.

One stem was reported sold in New York Harbor Thursday, as ConocoPhillips reported selling 380 CST at $634/mtw for 550 mt for delivery March 9.

--Tom Sosnowski, thomas_sosnowski@platts.com

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