Soft demand for bunker fuel drives U.S. spot prices down May 4; sharpest day-over-day drop happened in Houston where prices settled at US$663/mtw, down US$15/mtw from previous day
May 9, 2011
– Soft demand for bunker fuel has weighed on U.S. spot prices as few stems were noted in the spot market on May 4, Platts reported sources saying on May 5.
More sophisticated buyers may be holding out for lower prices, encouraged by falling NYMEX and Brent crude, Platts reported a West Coast bunker supplier saying.
The supplier also speculated that the falling prices could be attributable to lower prices in the Hong Kong and Asian markets, Platts reported.
The biggest day-over-day decline happened in Houston on May 4, where prices settled at US$663 per tonne ex-wharf, falling $15/mtw from the previous day. New York Harbor 380 CST settled at $666/mtw, off $5/mtw as Los Angeles 380 CST settled at $687/mtw, off $8/mtw, Platts reported.
Japan is in the midst of holidays this week and that too could be weakening demand, Platts reported another supplier speculating.
The primary source of this article is Platts, New York, New York, May 5, 2011.