Americas Market Update 1 Apr
Bunker fuel prices have moved in mixed directions, and deliveries in Zona Común are expected to face delays over the weekend.
IMAGE: Container terminal at the port of Santos, Brazil.Getty Images.
Changes on the day to 08.00 CDT (13.00 GMT) today:
- VLSFO prices down in Balboa ($141/mt), Houston ($139/mt), Seattle ($128/mt), Los Angeles ($109/mt) and Santos ($32/mt)
- LSMGO prices down in Los Angeles ($271/mt), Balboa ($220/mt) and Seattle ($212/mt)
- HSFO prices down in Seattle ($116/mt)
Fuel prices have largely tracked Brent's downward movement and have fallen significantly over the past day.
Los Angeles' LSMGO price has dipped the most across all key ports and all three conventional fuel grades. The grade is currently at a premium of $264/mt to Seattle, making it cheaper to bunker the grade at the latter port.
Bunker demand in Houston is expected to increase in the coming weeks, and all three grades are currently tight on prompt availability, requiring at least one week to secure.
The port's Hi5 spread has stood at $116/mt today. Weather conditions at the port have largely improved and remain conducive to bunkering.
Bunker deliveries in Argentina’s Zona Común are currently ongoing but are expected to face possible disruptions due to high wind gusts in the region.
Delays are anticipated from early morning between 4–5 April, a source said.
Brent
The front-month ICE Brent contract has lost $14.65/bbl on the day, to trade at $102.52/bbl at 08.00 CDT (13.00 GMT) today.
Upward pressure:
Brent’s price has remained well-supported by the latest developments in the Middle East war.
Overnight, an oil tanker – leased to Qatar’s state-owned energy firm QatarEnergy – was hit by an Iranian missile, while sailing in Qatari waters, Reuters reported citing the country’s defence ministry.
Two of the three Iranian missiles targeting Qatar were intercepted, while one hit the Aqua 1 oil tanker, the report added. The vessel was located 17 nautical miles north of Qatar's Ras Laffan port, the United Kingdom Maritime Trade Operations (UKMTO) said.
“Brent crude gained in early trading after reports of another attack on an oil tanker,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “This signalled a deepening Middle East conflict that shows little sign of nearing a resolution,” he added.
The effective closure of the Strait of Hormuz due to the conflict has started impacting global economies, according to government reports.
“The conflict, which is now in its fifth week, has caused extensive infrastructure damage,” Hynes said.
Downward pressure:
Brent crude’s price has declined following a significant build-up in US crude stocks.
US crude oil inventories rose by 10.3 million bbls in the week ending 27 March, according to estimates from the American Petroleum Institute (API), cited by Trading Economics.
The crude stock build was “far above expectations for a 1.3mb [1.3 million b/d] build,” two analysts from ING Bank said.
A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.
By Gautamee Hazarika and Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
