High sulfur bunker fuel prices in Seattle were assessed by Platts Thursday at their lowest levels in almost a year.
Platts assessed the IFO 380 CST market in Seattle at $575.25/mt ex-wharf, its lowest price since it was assessed at $574.50/mt ex-wharf on July 12 last year. At that time, ICE Brent front-month crude futures were assessed at $100.78/b, and was beginning to increase after a $19/b drop-off from the previous month.
ICE Brent front-month crude futures were assessed Thursday at $102.16/b, in comparison.
Sources in Seattle have mentioned a lack of demand coupled with falling crude prices as the primary causes behind the IFO 380 CST decrease.
One source who participates in the Seattle market told Platts that Seattle has been getting lots of supply, and the general lack of demand on the West Coast has not been able to keep up, causing the price to drop.
The source added that they have been purchasing cheaper, higher-sulfuric bunker fuel, known as IFO 500 CST, or RMK, in Seattle instead of IFO 380 CST.
Another supplier said that RMK makes up the bulk of their inquiries.
"Most of the business is now RMK. Very little RMG is done here anymore. [RMK] saves the ship owners money," the source said.
The source added that producing RMK requires fewer blending materials, which lowers the ultimate cost of the product.
