Americas Market Update 12 Dec

Bunker price movements have been mixed across the Americas, and strong wind gusts have suspended bunkering in GOLA.

IMAGE: Cargo containers being offloaded in the Port of Los Angeles. Getty Images

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

• VLSFO prices up in New York and Zona Comun ($2/mt), unchanged in Los Angeles, and down in Balboa ($13/mt) and Houston ($1/mt)
• LSMGO prices up in Zona Comun ($6/mt), New York ($5/mt) and Balboa ($1/mt), and down in Los Angeles ($4/mt) and Houston ($1/mt)
• HSFO prices up in Houston, Balboa ($5/mt) and New York ($4/mt), and down in Los Angeles ($2/mt)

Balboa's VLSFO price has recorded the steepest decline in the past day. A lower-priced 150–500 mt VLSFO stem has been fixed at $404/mt and applied downward pressure.

In Panama, bunker demand has held steady so far this week. In Balboa and Cristobal, VLSFO and LSMGO can be delivered with lead times of 3–6 days. For HSFO, suppliers have recommended lead times of 4–7 days.

In the US Gulf, bunker operations have been suspended in the Galveston Offshore Lightering Area (GOLA) due to high wind gusts. Disruptions at the anchorage are expected to persist through Monday, a source said.

Bunkering could get suspended at Argentina's Zona Común anchorage from today. Periods of rough weather and high wind gusts blowing over 20 knots are forecast until Monday.

Brent

The front-month ICE Brent contract has lost $0.30/bbl on the day, to trade at $61.21/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent has rebounded after the previous day’s losses, supported by renewed concerns over disruption to Venezuela-linked oil supply.

Earlier this week, the US Coast Guard seized an oil tanker off the coast of Venezuela, that regularly transported US-sanctioned oil on behalf of Venezuela and Iran.

The news has marked a major escalation in geopolitical tensions between the two countries “and threatens up to 560kb/d [560,000 b/d] of crude oil exports,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Washington is preparing to intercept more vessels carrying Venezuelan oil, Reuters reported citing sources. “Shippers may become reluctant to load Venezuelan cargo,” Hynes added.

Downward pressure:

Brent’s price has come under some downward pressure following statements from Ukraine’s President Volodymyr Zelensky, according to market analysts.

“He [Zelensky] indicated that the United States wants to understand the status of peace proposals by Christmas, but clarified that there is no firm deadline set by the US regarding these proposals,” remarked Price Futures Group’s senior market analyst Phil Flynn.

Besides, leaders from France, Germany and the UK held a telephone call with US President Donald Trump this week, to discuss efforts to end the four-year long conflict in Ukraine.

A peace deal between Russia and Ukraine could ease global sanctions on Russian energy and bring sanctioned oil volumes back to the market, according to analysts.

By Gautamee Hazarika and Aparupa Mazumder

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