Americas Market Update 14 Aug

Fuel prices have moved in mixed directions, with high wind gusts expected to cause possible delays in St. Eustatius.

IMAGE: Container loading area in the port of Balboa. Getty Images

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

• VLSFO prices up in Balboa ($20/mt), Houston ($6/mt) and New York ($5/mt), and down in Los Angeles ($8/mt) and Zona Comun ($2/mt)
• LSMGO prices up in Balboa ($36/mt), Zona Comun ($21/mt), New York ($20/mt), Houston ($8/mt) and Los Angeles ($6/mt)
• HSFO prices unchanged in New York, and down in Balboa ($17/mt), Los Angeles ($5/mt) and Houston ($1/mt)

LSMGO prices have increased across all major ports in the Americas over the past day, despite a small decline in Brent.

Balboa has recorded the highest increases in both LSMGO and VLSFO prices.

The Panamanian port’s VLSFO price has increased after a higher-priced 150-500 mt stem, fixed at $800/mt, put upward pressure on the price.

Bunker demand in Panama has been steady, and availability is normal, a trader said.

Suppliers at Balboa and Cristobal have recommended lead times of around 3-6 days for VLSFO and LSMGO. HSFO availability has been relatively tighter, with most suppliers requiring 5-7 days’ lead time.

In the Caribbean, bunker deliveries at St. Eustatius are expected to face possible delays between 14-16 August due to high wind gusts, a source said.

Brent

The front-month ICE Brent contract has lost $0.02/bbl on the day, to trade at $87.06/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price is poised to end the week higher than it began, amid growing hostilities between the US and Iran, in the Middle East.

The US Central Command (CENTCOM) has established a “multinational attack drone task force,” it said.

The unit – called Task Force Falcon Strike – will deploy one-way attack drones on targets in the Middle East, consisting of unmanned systems operated by military support staff from the US and regional partners, CENTCOM said.

Downward pressure:

Brent’s price has felt some downward pressure after global oil watchdogs slashed oil demand projection for 2026.

The Organization of the Petroleum Exporting Countries (OPEC) has reduced its global oil demand growth projection for 2026, to about 600,000 b/d.

Meanwhile, Paris-based International Energy Agency (IEA) expects global oil demand to shrink by 1.6 million b/d in 2026.

“The IEA now expects global oil demand to fall by 1.6m b/d YoY in 2026 [1.6 million b/d year-on-year] due to Persian Gulf disruptions and elevated fuel prices,” two analysts from ING Bank noted.

By Gautamee Hazarika and Aparupa Mazumder

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