Americas Market Update 16 Dec

Prices have mostly tracked Brent's downward movement, and bunker deliveries in GOLA are facing suspensions due to high wind gusts.

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

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

• VLSFO prices unchanged in Los Angeles, and down in Houston ($22/mt), Zona Comun ($13/mt), New York ($6/mt) and Balboa ($4/mt)
• LSMGO prices down in Houston ($25/mt), New York, Balboa ($15/mt), Zona Comun ($14/mt) and Los Angeles ($10/mt)
• HSFO prices up in Houston ($1/mt), unchanged in Los Angeles, and down in New York ($11/mt) and Balboa ($4/mt)

Houston’s VLSFO price has recorded the steepest decline among the ports.

This has likely been influenced by two lower-priced stems booked at the port, a 500–1500 mt stem at $415/mt and a 150–500 mt stem at $393/mt, which have exerted downward pressure on the benchmark.

In Houston, VLSFO and LSMGO can be delivered within 3–7 days, while HSFO requires around a week, a bunker trader said.

In the Galveston Offshore Lightering Area (GOLA), high wind gusts have impacted bunker schedules, causing deliveries to face suspensions. These rough weather conditions, comprising high winds and high seas, are expected to persist until 19 December at the anchorage, a source said.

While prices across key hubs have mostly tracked Brent’s downward movement, the port of Los Angeles has shown resilience to broader market pressure.

HSFO and VLSFO prices at the port have remained unchanged, keeping the port's Hi5 spread steady at $93/mt today.

Brent

The front-month ICE Brent contract has lost $1.20/bbl on the day, to trade at $59.73/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

The European Union (EU) on Monday sanctioned four shipping companies and five individuals for supporting Russia’s shadow fleet operations. These entities have direct or indirect ties to Russian oil companies Rosneft and Lukoil – both of which are also subject to US sanctions since October, according to the EU Council.

This news has provided some support to Brent’s price today.

These shipping companies own or manage shadow fleet tankers restricted by the EU or by other countries, the bloc said in a statement. 

Downward pressure:

Brent crude’s price has plunged below the $60/bbl mark amid growing hopes of a potential ceasefire deal between Russia and Ukraine.

The US government has offered to provide “NATO-style security guarantees” to Kyiv, Reuters reported, signalling potential commitments by allied countries to safeguard Ukraine’s territorial integrity and political independence.

“Crude oil fell as the market weighed up signs of optimism on a peace deal being reached between Russia and Ukraine,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Besides, European negotiators reported progress in talks to end the four-year long conflict, the report added. These developments have raised market expectation of a peace deal – sooner than later.

“Oil markets will be watching developments closely, given the significant supply risk from sanctions on Russia,” remarked two analysts from ING Bank.

By Gautamee Hazarika and Aparupa Mazumder

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