Americas Market Update 12 Mar

Fuel prices have risen across all key ports in the Americas, and operations in GOLA are currently suspended due to rough weather conditions.

IMAGE: A line of cargo and tanker ships crossing Trinity Bay, from the Gulf of Mexico to the Port of Houston. Getty Images.

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

• VLSFO prices up in Zona Comun ($72/mt), Houston ($45/mt), Balboa ($31/mt) and New York ($29/mt)
• LSMGO prices up in Balboa ($161/mt), Zona Comun ($96/mt), New York ($59/mt) and Houston ($3/mt)
• HSFO prices up in New York ($32/mt) and Houston ($12/mt)

Fuel prices have tracked Brent’s upward movement in the past day and have recorded gains across all ports and fuel grades.

Balboa’s LSMGO price benchmark has surged the highest and is currently trading at premiums of $170/mt to Cartagena in Colombia and $173/mt to Guayaquil in Ecuador.

Demand is extremely high in Panama, putting pressure on prompt availability at both Balboa and Cristobal, a source said. Lead times for all three fuel grades are between 7–10 days.

New York’s HSFO and VLSFO price moves over the past day has narrowed the Hi5 spread to $18/mt today compared to a Hi5 spread of $115/mt from a month ago. This marks a rare tightening of the spread for the New York market.

In the US Gulf Coast, bunkering operations have been suspended in GOLA, as high seas and strong wind gusts are causing disruptions at the anchorage location. Delays are expected until tomorrow, a trader told ENGINE.

Brent

The front-month ICE Brent contract has gained by $7.25/bbl on the day, to trade at $98.36/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent has moved closer to $100/bbl mark once again, following major disruptions in the Persian Gulf.

Over last night, two tankers caught fire after being struck by Iranian missiles in Iraqi territorial waters, according to Iraq’s national oil marketer State Oil Marketing Company (SOMO).

Iraq’s oil ports have completely ceased operations following the attacks, Reuters reported.

The latest attacks mark an escalation in the Middle East conflict, raising the number of vessels struck in the region ‌to at least 16, the report added.

“There are no signs of de-escalation in the Persian Gulf, so there is no end in sight to the disruptions to oil flows through the Strait of Hormuz,” two analysts from ING Bank said.

Downward pressure:

Brent’s price rally somewhat eased after the US Energy Information Administration (EIA) reported a surge in US crude stocks.

Commercial US crude oil inventories increased by 3.8 million bbls to 443 million bbls in the week ending 6 March, according to data from the EIA.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.

By Gautamee Hazarika and Aparupa Mazumder

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