Americas Market Update 13 Nov

Bunker prices have trended up, and demand has held steady in New York.

IMAGE: Cranes loading a container ship at a terminal in New York. Getty Images

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

• VLSFO prices up in Zona Comun ($78/mt), Balboa ($52/mt), Los Angeles ($38/mt), Houston ($33/mt) and New York ($23/mt)
• LSMGO prices up in Zona Comun ($125/mt), Los Angeles ($61/mt), Houston ($59/mt) and New York and Balboa ($41/mt)
• HSFO prices up in Los Angeles ($33/mt), Houston ($21/mt), New York ($15/mt) and Balboa ($6/mt)

Argentina’s Zona Comun has recorded the steepest VLSFO and LSMGO price increases over the past day. Prompt supply has been tight, with most suppliers requiring lead times of 7-10 days, a source said.

High wind gusts over 20 knots could disrupt deliveries until Sunday.

New York has recorded the smallest VLSFO price increase. Nonetheless, it has maintained a premium of $18/mt over Houston’s.

Bunker demand has steadied in New York after two strong weeks, a source said. LSMGO is the only grade available for prompt delivery, with lead times of 2-3 days advised. HSFO availability is normal, with suppliers recommending 5-7 days.

Suppliers have recommended lead times of 7-10 days for VLSFO, a trader said.

Brent

The front-month ICE Brent contract has gained $2.31/bbl on the day, trading at $96.11/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent has come under upward pressure after US President Donald Trump said Washington does not need a deal with Iran.

“We don’t need a deal with Iran. Those days have long since passed,” Trump wrote on social media platform Truth Social yesterday.

He added that the US controls Iran’s money and the Strait of Hormuz.

“Developments in the Strait of Hormuz remain the key driver for the oil market,” two analysts from ING Bank noted.

Attacks on commercial vessels transiting the Persian Gulf have also continued. Iran’s military said yesterday that four oil tankers were hit by explosions in the Strait of Hormuz after ignoring its warnings, Reuters reported.

“An improvement in regional flows would allow more of the geopolitical premium to unwind, although continued disruptions leave the market vulnerable to renewed upside,” ING Bank’s analysts added.

Downward pressure:

Brent’s gains have been capped by a rise in US crude stocks.

Commercial US crude oil inventories rose by 4.7 million bbls to 414.4 million bbls in the week ending 6 November, according to the US Energy Information Administration (EIA).

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

By Gautamee Hazarika and Aparupa Mazumder

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