Americas Market Update 13 Apr

Fuel prices have increased across all major ports, while deliveries in Freeport are delayed due to adverse weather conditions.

IMAGES: Container ship crossing over the Miraflores locks at the Panama Canal. Getty Images.

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

• VLSFO prices up in Los Angeles ($68/mt), Houston ($56/mt), Zona Comun ($45/mt), Balboa ($37/mt) and New York ($13/mt)
• LMSGO prices up in Balboa ($117/mt), Los Angeles ($115/mt), New York ($70/mt) and Houston ($17/mt)
• HSFO prices up in Balboa ($68/mt), Los Angeles ($61/mt), New York ($35/mt) and Houston ($27/mt)

Fuel prices in the Americas have largely tracked Brent's upward movement and have increased over the past session.

Balboa's LSMGO price benchmark has recorded the highest jump across all key ports and the three conventional fuel grades. It is currently at a premium of above $300/mt to Cartagena in Colombia and at a small discount of $27/mt to Guayaquil in Ecuador.

In Panama, bunker demand is strong, with availability showing an improvement compared to last week, a trader told ENGINE.

In both Balboa and Cristobal, the recommended lead times are 3–5 days for VLSFO and LSMGO, while HSFO requires slightly longer at 4–7 days.

In the Bahamas' Freeport, anchorage deliveries are facing delays due to rough weather conditions. A barge will assess conditions throughout the day to determine whether anchorage deliveries can proceed, a source said.

HSFO and LSMGO require lead times of around 6–7 days this week.

Brent

The front-month ICE Brent contract has gained $5.95/bbl on the day from Friday, to trade at $101.79/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has rallied as hopes of a Pakistan-mediated ceasefire deal between the US and Iran lost steam over the weekend, following 21 hours of failed peace negotiations in Islamabad.

The US Central Command (CENTCOM) will enforce a blockade on vessels entering and exiting Iranian ports today, it said earlier.

“Expectations of an end to this conflict were dashed after weekend talks ended without agreement,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile President Donald Trump has signalled Washington’s plan to resume some military operations in Iran.

These measures will “restrict Iran’s ability to export oil and will exacerbate the supply disruptions the market is experiencing,” Hynes added.

Downward pressure:

Brent’s price has felt some downward pressure following firm US inflation data, as it dampens expectations of further interest rate cuts by the US Federal Reserve (Fed) this year.

The US inflation rate, based on the Consumer Price Index for all urban consumers (CPI-U), increased by 0.9% in March, higher than the 0.3% growth noted in February, according to the US Bureau of Labor Statistics (BLS).

On an annual basis, the US CPI advanced 3.3% last month – much higher than the 2.4% growth seen in February.

Higher interest rates in the US can weigh on demand growth and make dollar-denominated commodities like oil more expensive for holders of other currencies.

By Gautamee Hazarika and Aparupa Mazumder

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