High sulfur bunker fuel prices in Panama rose to the highest level in more than 14 months, with market participants reporting a lack of product.

Prices for IFO 380 CST grades in Latin America’s biggest market for bunker fuel were assessed up $8 to $290/mt in the ports of Balboa and Cristobal on Friday, surpassing the previous 14-month high of $288/mt reached on October 7. While prices for IFO 380 in Balboa were heard in the range of $277-$283/mt, the assessment was based on activity in the Platts Market on Close assessment process. During the MOC, Peninsula placed an initial bid of $281/mt ex-wharf for 500 mt for delivery October 24-28, gradually raising its bid to $290/mt and withdrawing at that level without attracting selling interest.

“I’ve never seen this market so dry,” said one market participant in Panama, who speculated that the lack of marine fuel resulted from other ports willing to pay more for it. “Product that we were expecting this week has been delayed to the end of the month.”

A separate Panama-based trader said that the earliest they have heard deliveries could take place is October 26-27.

Source: S&P Global

–Patrick Harrington, patrick.harrington@spglobal.com

–Edited by Annie Siebert, ann.siebert@spglobal.com