Americas Market Update 14 July

Fuel prices across the Americas have recorded gains, and bunker demand in Panama has seen a healthy uptick.

IMAGE: Cargo port with cranes and shipping containers along the entrance to the Panama Canal. Getty Images.

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

• VLSFO prices up in Zona Comun ($66/mt), Balboa ($65/mt), Houston ($57/mt), New York ($42/mt) and Los Angeles ($37/mt)
• LSMGO prices up in New York ($165/mt), Zona Comun ($148/mt), Balboa ($101/mt), Houston ($100/mt) and Los Angeles ($60/mt)
• HSFO prices up in Balboa ($67/mt), Houston ($41/mt), New York ($30/mt) and Los Angeles ($26/mt)

Prices across all key ports have tracked Brent's upward movement over the past day.

Houston's VLSFO price has increased after a higher-priced 150-500 mt stem, fixed at $678/mt, has put upward pressure on the benchmark.

Availability is generally good in ports along the US Gulf Coast. There are pockets of tightness, with certain suppliers citing congestion. 

Four suppliers in Houston can deliver VLSFO and LSMGO with lead times of around a week, and possibly shorter too.

Balboa's HSFO price has increased the most among the grade. Bunker demand at the port has seen a slight uptick, and availability at the port is good, a source said.

Brent

The front-month ICE Brent contract has gained $8.58/bbl on the day, to trade at $87.16/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude has vaulted higher, gaining nearly $10/bbl on the day, as hostilities in the Strait of Hormuz continued to intensify over the weekend and into this week.

The US Central Command (CENTCOM) has struck Iran again, after President Donald Trump reimposed the blockade on vessel movement in and out of Iranian ports.

“The return of the US blockade is much more impactful for markets than the previous suspension of the sanction waiver on Iranian oil,” two analysts from ING Bank said.

Additionally, the US has proposed a fee equivalent to 20% of a cargo's value to escort vessels through the Strait of Hormuz.

A 20% fee on a vessel carrying about 2 million bbls at $80/bbl will be “equivalent to around $32m [$32 million] or an additional cost of $16/bbl,” ING Bank’s analysts estimated. “This is significantly higher than the $1/bbl toll for which Iran has been pushing,” they added.

Downward pressure:

While there are no significant downward pressures acting on Brent’s price today, market analysts are cautious of weakening global crude oil demand.

The Organization of the Petroleum Exporting Countries (OPEC) has reduced its global oil demand growth projection for 2026 to about 800,000 b/d, around 200,000 b/d lower than its previous estimate.

The Paris-based International Energy Agency (IEA) expects global oil demand to decline by 1 million b/d in 2026 – stopping short of providing an average global oil demand forecast.

Global oil demand is expected to decline this year as geopolitical unrest in the Middle East continues to impact markets across various products and regions.

By Gautamee Hazarika and Aparupa Mazumder

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