Americas Market Update 15 Jan

Bunker prices have fallen across all key ports, and availability of all three conventional fuels is good at Balboa this week.

IMAGE: A ship being loaded with fuel along the Buffalo Bayou, just east of downtown Houston. Getty Images.

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

• VLSFO prices down in Balboa ($28/mt), Los Angeles ($23/mt), Houston ($18/mt), Zona Comun ($16/mt) and New York ($15/mt)
• LSMGO prices down in Zona Comun ($54/mt), Balboa ($37/mt), Houston ($21/mt), Los Angeles ($17/mt) and New York ($11/mt)
• HSFO prices down in New York ($18/mt), Los Angeles ($15/mt), Houston ($14/mt) and Balboa ($11/mt)

Bunker fuel prices have largely tracked Brent’s downward movement in the past day.

Balboa’s VLSFO price has fallen the most within the grade, after a lower-priced 150–500 mt stem, fixed at $447/mt, put downward pressure on the benchmark.

The Panamanian port’s LSMGO price has also fallen after a lower-priced 150–500 mt LSMGO stem was booked at $674/mt, which has weighed on the benchmark.

Availability remains normal, with all three conventional grades available at Balboa and Cristobal within 3–5 days.

In New York, both HSFO and VLSFO prices have dipped, bringing the port’s Hi5 spread to $112/mt today, which is the widest among the key ports in the Americas.

Bunker demand in New York remains firm, with recommended lead times for both grades currently standing at 4–7 days. LSMGO typically requires a 2–3-day lead time.

Brent

The front-month ICE Brent contract has lost $2.61/bbl on the day to trade at $63.70/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude’s price has drawn support from the ongoing hostilities in the Middle East.

Conflict-related risks in Iran – a core OPEC member – have intensified after US President Donald Trump threatened action over Tehran’s crackdown on protesters.

“The US National Security Council is due to meet Tuesday to prepare options for the president,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Iran is the fourth-largest OPEC member, producing around 3.2 million b/d of crude oil.

“Oil prices are feeling the heat… on these supply disruption fears,” remarked Price Futures Group’s senior market analyst Phil Flynn.

Downward pressure:

Brent crude’s price retreated after the US Energy Information Administration (EIA) reported a sizeable increase in US crude stocks.

Commercial US crude oil inventories have increased by 3.4 million bbls to around 422 million bbls for the week ending 9 January, according to data from the EIA.

The EIA report was “relatively bearish” – marking the biggest increase in two months, according to Hynes.

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

By Gautamee Hazarika and Aparupa Mazumder

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