Argentina 1Q VLSFO sales down on barge availability

Market: Oil products
30/05/25

Very low-sulphur fuel oil (VLSFO) sales in Argentina fell by 21pc in the first quarter of 2025 as tighter barge availability pushed up prices and shipowners opted to buy bunker fuel at ports with lower prices.

VLSFO sales in the first quarter dropped to 277,725 metric tonnes (t), a 21pc decline from the same quarter last year, according to the latest data from Argentina's Petroleum and Gas Institute.

Shipowners' ability to bunker in Buenos Aires was limited by two bunker barges being sent to dry dock for maintenance in the first quarter, according to a market source.

Shipowners operating tankers were competing with cruise ships for the limited barge availability during the busy cruise season in the southern hemisphere, which contributed to prices rising, the source said.

Exports from Argentina also declined in the first quarter, likely because of the limited barge capacity. Argentina exports totaled about 17,842 t compared with 122,715t for the first quarter 2024.

Buenos Aires VLSFO prices were elevated compared with other competing ports in Latin America in the first quarter, averaging $580/t compared with $562/t in nearby Santos, Brazil, and $559/t for Panama, the lowest monthly average in the region. VLSFO in Cartagena, Colombia, was slightly higher at $582/t.

So far in the second quarter the monthly average spread has widened, as Buenos Aires has averaged $562/t in April and May compared with $506/t in Santos and $489.50/t in Panama.

By Luis Gronda

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