Deliveries of marine fuel in the Los Angeles market declined again in May, marking the fifth consecutive monthly decline, according to data released by the Port of Los Angeles in the week ending Sept. 5.
The data represents total barrels delivered into Los Angeles and Long Beach, with the May volumes at 1,201,370, down 12% on the month and 17.1% on the year.
The Los Angeles market has seen a sharp fall in demand, in line with dynamics seen for several other key North American ports amid the ongoing COVID-19 pandemic, sources said.
A regional supplier talked availability of bunkers in Los Angeles as “plentiful” during May, adding that sentiment continued to be influenced by weak demand.
After pricing reached its lowest point for IFO 380, 0.5%S marine fuel and MGO in April, spot values started to rebound in May.
The ex-wharf spot price of IFO 380 in Los Angeles rose from $149/mt on May 1 to $198/mt on May 29, representing an increase of $49/mt, or 32.9%, according to S&P Global Platts data.
Likewise, spot 0.5%S value on a delivered basis rose to $288/mt from $215/mt over the same period, gaining $73/mt or 34%.
Ex-wharf MGO pricing showed the highest increase in May, rising to $332/mt from $215/mt from May 1 to May 29, gaining $117/mt or 54.4%.