By Platts
...Tuesday price indications (click here) from the two bunker suppliers in Valparaiso were talked around $330-352/mt delivered, amid firm demand even after state-owned ENAP increased $30 its posted price week over week.
ENAP is the sole supplier for the Chilean bunker market. Sources say the refiner's posted price lags international oil price increases and is based on an algorithm that includes US Gulf Coast fuel oil and diesel prices, among other factors.
In addition to the hike in feedstock prices, high swells at the port of Valparaiso have put pressure on prices as suppliers have been unable to load product.
"Even with those conditions, we have sold good volumes of bunkers this week in the spot market because we still have demand from buyers unable to resupply in Peru or Ecuador," one of the suppliers said.
Although a port condition report released by the Chilean Army Tuesday showed the port of Valparaiso as open, it also released a special warning on high swells between Sunday and Tuesday.
This is a video from about nine months ago and shows swells at the shoreline of Valparaiso, Chili. This city was also effected by the earthquake last year. This is the Pacific Ocean effecting the economy of "bunker fuel." This is the climate crisis causing economic losses to this region of the world.
If the ships can't off load the fuel the price will increase because the supply is low. That impacts shipping and economic losses occur because the cost of shipping increases.
