Americas Market Update 11 Mar

Fuel prices have mostly declined across key ports, while delays are expected in GOLA until tomorrow due to rough sea conditions.

IMAGE: Container ship docked in the Port of Balboa. Getty Images.

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

• VLSFO prices up in Balboa ($6/mt), and down in Houston ($19/mt), New York ($12/mt) and Zona Comun ($11/mt)
• LSMGO prices down in Zona Comun ($84/mt), New York ($65/mt), Houston ($31/mt) and Balboa ($18/mt)
• HSFO prices up in Houston ($9/mt) and down in New York ($16/mt)

Prices at key hubs across the Americas continue to be impacted by tensions in the Middle East.

Balboa’s VLSFO price has increased over the past day, while other ports have recorded a dip for the grade. It is currently trading at a premium of $152/mt to Barranquilla, Colombia.

Demand has surged in Panama over the past few weeks and availability across all three grades is tight, a trader tells ENGINE. At least a week's notice is recommended to secure stock.

In the US Gulf, the anchorage at the Galveston Offshore Lightering Area (GOLA) is currently experiencing elevated sea conditions, which could delay bunker deliveries between 11–12 March, a source said.

Bunkering at Argentina’s Zona Comun resumed earlier this week, on Monday, after operations were suspended on 2 March. Deliveries are currently underway.
Lead times for VLSFO and LSMGO at the anchorage are currently between 7–10 days.

Brent

The front-month ICE Brent contract has lost by $1.08/bbl on the day, to trade at $91.11/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent’s price has felt some upward pressure after the American Petroleum Institute (API) reported a draw in US crude stocks, partially offsetting a 17-million-bbl surge over the last two weeks.

In contrast, market participants had expected a 1.4-million-bbl build.

A drop in US crude stocks can indicate higher demand for oil and put some upward pressure on Brent's price.

Reports that Iran has laid naval mines in the Strait of Hormuz have supported Brent’s price today.

The US army has reportedly destroyed multiple Iranian vessels and 16 minelayers, according to a video posted by the US Central Command (CENTCOM) on social media platform X.

“The return of oil flows through the Strait of Hormuz remains crucial. The longer flows remain constrained, the more upstream oil production will be shut in,” two analysts from ING Bank noted.

Downward pressure:

On Monday, US President Donald Trump said that the conflict could end before four weeks – as previously expected. Brent’s price has shed following this development.

Brent receded after “President Trump suggested that the war would end soon,” ING Bank’s analysts said.

The Group of Seven (G7) developed countries refrained from committing a joint release of oil from emergency reserves yesterday.

However, the International Energy Agency’s (IEA) executive director Fatih Birol said that representatives from the IEA member governments will meet for a second round of discussions later today.

“There are reports that the group will meet again today and could agree on a coordinated release of 300-400m barrels [300-400 million bbls],” ING Bank’s analysts added.

IEA member countries currently hold over 1.2 billion bbls of public emergency oil stocks, with another 600 million bbls of industry stocks held under government obligation, Birol said in a statement.

“The mere suggestion of this release has helped ease prices,” the two ING analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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