Americas Market Update 13 Aug

Fuel prices have moved in mixed directions, and bunker demand is strong at the port of New York.

IMAGE: Brooklyn waterfront with shipping containers and cranes. Getty Images

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

• VLSFO prices up in New York ($8/mt), and down in Zona Comun ($42/mt), Houston ($23/mt), Balboa ($16/mt) and Los Angeles ($2/mt)
• LSMGO prices up in New York ($2/mt), and down in Zona Comun ($46/mt), Los Angeles ($18/mt), Houston ($16/mt) and Balboa ($13/mt)
• HSFO prices up in Los Angeles ($8/mt), and down in Houston ($32/mt), New York ($9/mt) and Balboa ($1/mt)

New York’s VLSFO price has increased, while the port's HSFO price has decreased over the past day, widening the port’s Hi5 spread to $189/mt from $172/mt on Wednesday.

Bunker demand is strong at the port, and availability is decent for LSMGO and VLSFO, with suppliers recommending lead times of 4–7 days. However, HSFO availability is expected to tighten slightly this week and requires at least seven days’ notice, a trader said.

Zona Comun has recorded the steepest declines in both VLSFO and LSMGO prices.

Availability at the anchorage is normal, with recommended lead times of around 5–7 days for both grades. However, high wind gusts are expected to cause some delays at the anchorage.

Brent

The front-month ICE Brent contract has lost $1.46/bbl on the day, to trade at $87.08/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has continued to trade above $85/bbl mark as rising hostilities in the Middle East keeps the market on edge.

Iran said the Strait of Hormuz will remain closed unless Washington agrees to the six demands, including a total cessation of all US military action in the region and the immediate withdrawal of all US forces from the region.

In response, US President Donald Trump demanded that Iran pay “compensation” to Washington for war-related damages.

“There was little in the way of fresh developments between the US and Iran, with both sides remaining in a deadlock,” two analysts from ING Bank noted.

Downward pressure:

Brent’s price has declined after the US Energy Information Administration (EIA) reported a significant build in crude stocks.

Commercial US crude oil inventories increased by a massive 17.4 million bbls to 424.4 million bbls in the week ending 7 August, according to data from the EIA.

“The EIA’s weekly report was fairly bearish,” ING Bank’s analysts said, adding this is the largest weekly increase since January 2023.

The American Petroleum Institute (API) also reported a sizeable inventory gain of 9.07 million bbls during the same week.

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

By Gautamee Hazarika and Aparupa Mazumder

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