Marine gasoil (MGO) prices in the Americas rose again on Tuesday, approaching $1,000/metric tonne (t) at North American ports, as the market continues to absorb the impacts of the US-Iran war.
Prices rose for the second consecutive trading day since the US and Israel's weekend attacks on Iran. Continued conflict could reduce the supply of middle distillates — including MGO — in the international market, market participants expect. This has driven the increase in MGO prices to outpace the rise in very-low sulfur fuel oil (VLSFO).
Bunker prices in the Americas spiked on Monday because of sharp gains in Brent and Nymex heating oil. Panama VLSFO was assessed at $588/t, the highest since 4 February 2025. Panama MGO was at $923/t, the highest since 30 October 2023.
In North America, New Orleans VLSFO ex-wharf rose to $558/t, its highest since 2 April 2025 and MGO ex-wharf to $803/t, the highest since 16 April 2024. VLSFO in New York was at $578/t, the highest since 17 January 2025.
The Middle East is the main producing region of middle distillates and the ongoing conflict is preventing the flow of these products through the strait of Hormuz, the only sea outlet for those distillates.
Amid the uncertainties about the next steps in the war, some buyers in the Americas have closed spot bunker deals for deliveries at the end of March, anticipating further increases in marine fuel prices. A shipowner bought 150t of MGO at $942/t in New Orleans on Tuesday and the price is already 17pc higher than on Friday, the last trading session before the war began.
Even so, most buyers have avoided taking positions because of the wide market volatility. Many suppliers are not providing price indications this week and prices are subject to inquiry.
