Americas Market Update 10 Aug

Fuel prices across the Americas have increased, and barge delays are expected in Zona Comun.

IMAGE: Vessel by Argentina's Zona Comun anchorage by La Plata. Antares

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

• VLSFO prices up in Balboa ($64/mt), Los Angeles ($24/mt), New York ($16/mt), Houston ($6/mt) and Zona Comun ($3/mt)
• LSMGO prices up in Los Angeles ($94/mt), Houston, Zona Comun ($55/mt), New York ($38/mt) and Balboa ($11/mt)
• HSFO prices up in Balboa ($33/mt), Houston ($29/mt), Los Angeles ($19/mt) and New York ($1/mt)

Amongst the ports, Balboa's VLSFO price has recorded the highest increase for the grade, after a higher-priced, 500-1,500 mt stem, booked at $767/mt, pushed the benchmark up.

The port's LSMGO has also increased, after a higher-priced 50-150 mt stem was booked at $1,287/mt, offering it support.

Bunker demand is normal and availability is good at both, Balboa and Cristobal. VLSFO and LSMGO can be delivered within 4-6 days, while HSFO requires at least five days, a source said.

In Argentina's Zona Comun, bad weather is expected to cause some delays in barge deliveries through this evening, a source told ENGINE.

Operations at the anchorage are currently on a first-come, first-served basis, with suppliers recommending lead times of 6-7 days for VLSFO and LSMGO.

Brent

The front-month ICE Brent contract has gained $3.34/bbl on the day, to trade at $84.96/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has opened the week higher, after market expectations of a swift reopening of the Strait of Hormuz took a backseat.

Tehran has demanded six major changes in Washington's foreign policy as a prerequisite to allow commercial vessels to safely transit the critical oil chokepoint, that carried one-fifth of global seaborne oil flows prior to the conflict.

“Oil prices remain supported by uncertainty surrounding the Strait of Hormuz,” two analysts from ING Bank noted.

The demands include a total cessation of all US military action in the region and the immediate withdrawal of all US naval and air forces from around Iran, among others.

“While US President Donald Trump said Washington is "semi-negotiating" with Iran… significant hurdles remain before any broader agreement is reached,” ING Bank’s analysts added.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US increased by three over the week to 454 units last week.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

By Gautamee Hazarika and Aparupa Mazumder

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