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The price of 380-centistoke(cst) in Montevideo plummeted by over $130 per tonne yesterday as Uruguay's leading bunker port recorded a significant price drop to levels below those being quoted in Buenos Aires.

380-cst fuel oil in Montevideo, which up until last week had been quoted at $415 per tonne, dropped by $132 to $283 per tonne on Monday as ANCAP's La Teja refinery slashed prices in a bid to boost flagging demand.

The price drop was so significant that price levels even fell below those being quoted in neghbouring Argentinian port Buenos Aires, which has traditionally been able to offer intermediate fuel oil and gasoil at below Montevideo levels.

Yesterday, 380-cst in Buenos Aires fell for the eleventh consecutive day to $296 per tonne, according to Bunker Index price data. However, the price was still $11 above the price for the same fuel oil grade in Montevideo following the decision to slash prices yesterday.

Meanwhile, Montevideo's other intermediate fuel oil grade, 180-cst, also nosedived $132 on Monday to $324 per tonne. With Buenos Aires levels at $345 per tonne yesterday, 180-cst was $21 per tonne cheaper in Montevideo.

However, the price of marine gasoil (MGO) in Buenos Aires remained lower than Montevideo yesterday despite prices in Uruguay being cut by $37 to $764 per tonne. MGO prices in Buenos Aires were pegged at $705 per tonne.

The 40,000 barrels-per-day La Teja plant near Montevideo is currently the sole source of fuel oil for the local bunker industry. State-owned ANCAP (Administración Nacional de Combustibles, Alcoholes y Portland), which operates the facility, sometimes imports cargoes from Brazil or Argentina in order to cover any shortfalls in production.

Annual bunker volumes in Montevideo and in the Alpha and Delta offshore delivery zones are estimated to be between 285,000 and 300,000 metric tonnes.