The Los Angeles 3.5%S IFO 380 bunker fuel price dropped $28.50/mt to $621.50/mt, the lowest level assessed by Platts in four months.

The last time Platts assessed bunker fuel near this level was on August 2, when it was assessed at $616.50/mt.

The decrease put Los Angeles bunker fuel at a discount to San Francisco 3.5%S IFO 380 bunker fuel for the first time in nearly a month. It was assessed at a $10/mt discount to San Francisco on October 8. Platts assessed IFO 380 in Los Angeles Monday at a $12.50/mt discount to San Francisco IFO 380.

Most market sources attributed the decrease in prices in Los Angeles, which began last week, bunker fuel prices in Singapore remaining low due to ample supply. Large ships are filling up in Asia to make round trips, rather than buying fuel on the US West Coast, sources have said.

"Overall the spread being so wide over the last few weeks has killed our demand," a West Coast bunker source said Monday.

In addition, some sources say demand has dropped recently as some container ships look elsewhere for fuel due to a strike closing multiple container terminals at the Los Angeles and Long Beach port complex.

Three of the six container terminals at the Port of Long Beach remain closed Monday, the same amount closed on Friday, according to the port's website.

Seven of the eight container terminals at the Port of Los Angeles remain closed, the same terminals affected Thursday and Friday, according to the port's website.

Source: Platts