Americas Market Update 14 Apr

Bunker fuel prices have generally trended downwards, and vessel movements in Houston will be restricted due to Fleet Week Parade activities.

IMAGE: Container ship leaving the Port of Houston at Morgan's Point. Getty Images.

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

• VLSFO prices up in Balboa ($94/mt), and down in Zona Comun ($85/mt), New York ($40/mt), Houston ($36/mt) and Los Angeles ($26/mt)
• LSMGO prices up in Balboa ($1/mt), and down in Los Angeles ($134/mt), New York ($129/mt) and Houston ($49/mt)
• HSFO prices down in Balboa ($89/mt), New York ($67/mt), Los Angeles ($50/mt) and Houston ($38/mt)

Balboa's VLSFO price has defied both the general market direction and Brent's downward movement, increasing by $94/mt over the past day.

Meanwhile, the port's HSFO price has decreased, widening the port's Hi5 spread to $172/mt today.

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

Los Angeles' LSMGO price has recorded the largest drop across all three conventional fuel grades. Nonetheless, the port has maintained premiums of $421/mt to Houston and $329/mt to New York.

On the US West Coast, bunker availability remains tight for prompt supply.

At the ports of Los Angeles and Long Beach, HSFO and LSMGO requires lead times of around 7–9 days, while VLSFO is comparatively tighter, with recommended lead times of 9–11 days.

In Houston, vessel movements are set to face restrictions on 15 April during the Fleet Week Parade of Ships, with no meeting or overtaking permitted from sea to the city dock, Houston Turning Basin, a ship agency said.

Brent

The front-month ICE Brent contract has lost $3.93/bbl on the day, to trade at $97.86/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has remained well supported by supply disruption concerns in the Middle East after the US military announced enforcing a blockade in the Strait of Hormuz.

US President Donald Trump said that Washington will block every vessel coming in and out of Iranian ports – multiplying concerns about crude oil flows through the region.  

A US blockade, which came into force yesterday, can curtail about 3 to 4 million b/d of regional crude oil supply, according to ANZ Bank’s senior commodity strategist Daniel Hynes.

Iran has already issued fresh threats to target vessels and ports in response to the US blockade, Al Jazeera reported.

“The US naval action could test the fragile ceasefire and raise the prospect of a re-escalation of the Middle East conflict,” Hynes said.

Downward pressure:

Brent’s price rally lost steam after Trump said Iran “wants to make a deal.” The comments came during a last-minute press conference at the White House yesterday, The Guardian reported.

“This suggests financial markets continue to look through the conflict to possible barrels being back on the market,” Hynes said.

However, Trump said during the press brief that Washington will not agree to a peace deal unless Tehran gives up its nuclear ambitions completely.

Diplomatic efforts to restart a dialogue between the US and Iran are continuing, with Pakistan reportedly offering to host the next round of talks in Islamabad, Al Jazeera reported.

“Oil is trading on the likelihood of de-escalation rather than outright supply disruption,” SPI Asset Management managing partner Stephen Innes said.

By Gautamee Hazarika and Aparupa Mazumder

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