Americas Market Update 10 Dec

Bunker fuel prices have mostly moved in mixed directions, and weather disruptions have caused delays at Bolivar Roads and GOLA.

IMAGE: View of Houston from a cargo ship. Getty Images

Changes on the day to 07.00 CST (13.00 GMT) today:

• VLSFO prices down in Zona Comun ($7/mt), Los Angeles, Balboa and Houston ($1/mt) and New York ($1/mt)
• LSMGO prices up in Houston ($2/mt), unchanged in Zona Comun, and down in Los Angeles ($4/mt), Balboa ($3/mt) and New York ($2/mt)
• HSFO prices up in New York ($3/mt), and down in Balboa ($4/mt), Los Angeles ($2/mt) and Houston ($1/mt)

Houston’s HSFO price has fallen by $1/mt over the past day.

The grade is benchmarked at $358/mt today - its lowest level of the year and a $123/mt decline from the start of 2025.

Bunker demand has been steady at the beginning of this month, and premiums are expected to strengthen, a source said.

Weather disruptions have been prevalent across the US Gulf, with multiple cold fronts moving through the region.

High winds and fog have caused intermittent bunker suspensions in Bolivar Roads and the Galveston Offshore Lightering Area (GOLA).

Zona Comun’s VLSFO has fallen by $7/mt over the past day to $492/mt. This is about $90/mt lower than on 1 January, when the grade was priced at $582/mt.

Zona Comun's VLSFO is at a $48/mt premium over Santos today, up from a $24/mt premium at the start of the year.

Both VLSFO and LSMGO are available at the Argentinian anchorage with 5-6 days of lead time. Weather conditions remain calm, with winds blowing between 10–14 knots.

Brent

The front-month ICE Brent contract has lost $0.51/bbl on the day, to trade at $62.10/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

The American Petroleum Institute (API) has estimated a drop in US crude stocks, providing some upward support to Brent crude’s price.

US crude oil inventories decreased by 4.8 million bbls in the week ending 5 December, according to API estimates.

A drop in US crude stocks usually signals stronger demand and can offer some support to Brent’s price.

“American Petroleum Institute numbers yesterday were supportive for crude [prices],” two analysts from ING Bank noted.

Downward pressure:

Ongoing peace negotiations to end the war in Ukraine has dragged Brent’s price lower so far this week.

Ukrainian President Volodymyr Zelensky, along with other European partners will present "refined documents" on a ceasefire plan with Russia soon, Reuters reported.

Should Ukraine and Russia reach a peace agreement, global sanctions on Russian companies may be eased, allowing sanctioned oil volumes back into the market, market analysts project.

In other news, the US Energy Information Administration (EIA) has released its latest oil market outlook, estimating that US crude oil production will reach a record high of 13.61 million b/d in 2025.

“A bearish gloom has been developing over the [oil] market in recent months, not helped by a bearish report from the Energy Information Administration,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The EIA expects global liquid fuels output to rise by 3 million b/d in 2025, reaching 106.1 million b/d. Production is projected to increase by a further 1.3 million b/d in 2026, lifting total supply to 107.4 million b/d.

By Gautamee Hazarika and Aparupa Mazumder

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