Americas Market Update 1 Sep

Fuel prices have mostly moved in the upwards direction, and possible bunker delays are expected at ports in the US Gulf and on the West coast due to tropical storm Edouard.

IMAGE: Container ship traffic in Los Angeles' Pier 300 Channel. Port of Los Angeles

Changes on the day to 08.00 CDT (13.00 GMT) today:

• VLSFO prices up in Houston ($27/mt), Balboa ($15/mt), Los Angeles ($14/mt) and New York ($8/mt), and down in Zona Comun ($15/mt)
• LSMGO prices up in Balboa ($50/mt), Los Angeles ($42/mt) and Houston ($31/mt), and down in Zona Comun ($9/mt) and New York ($1/mt)
• HSFO prices up in Houston ($12/mt), Los Angeles ($9/mt) and New York ($6/mt), and unchanged in Balboa

Despite Brent climbing up, bunker fuel prices at Zona Comun have declined.

Zona Comun’s VLSFO price has dipped over the past day as a lower-priced, 150–500 mt stem, fixed at $753/mt, has weighed on the benchmark.

The anchorage’s LSMGO price has also decreased after a lower-priced 0–50 mt stem, fixed at $1,530/mt, has put downward pressure on the benchmark.

Deliveries remain normal, and most suppliers have recommended lead times of 5–7 days, a source said.

The hurricane season lasts from June through November end. Delays to bunker operations in Freeport, TX–New Orleans and Los Angeles due to Tropical Storm Edouard are possible, a trader said.

According to the National Hurricane Center, Edouard could strengthen and briefly reach hurricane strength before it reaches the Northwest Gulf Coast on Tuesday.

Brent

The front-month ICE Brent contract has gained by $1.84/bbl on the day, trading at $92.53/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

US President Donald Trump has once again drawn the market’s attention with his latest hardline comments, putting upward pressure on Brent crude’s price.

The statement came shortly after the US and Iran resumed direct exchange of fire for the first time in recent weeks.  

Trump claimed that Washington is prepared to “smack” Iran, if it continues to target more US assets in the Middle East.

“Oil prices started the week stronger following the first military strikes between the US and Iran in a month,” two analysts from ING Bank noted.

Downward pressure:

While there is limited downward pressure on Brent’s price today, market analysts will have an eye out for the US commercial crude stocks data due later this week.

Commercial US crude oil inventories increased by 95,000 bbls to 429 million bbls in the week ending 21 August, according to data from the US Energy Information Administration (EIA).

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

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