Americas Market Update 17 July

Fuel prices in the Americas have mostly gained, while high wind gusts could cause bunkering delays in Zona Comun.

IMAGE: Vessel docked in the Port of Houston in the US. Port of Houston.

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

• VLSFO prices up in New York ($10/mt), Houston, Los Angeles ($9/mt), Balboa ($6/mt) and Zona Comun ($1/mt)
• LSMGO prices up in Zona Comun ($25/mt), Los Angeles ($23/mt), Houston ($18/mt), Balboa ($15/mt) and unchanged in New York
• HSFO prices up in Houston, Los Angeles ($3/mt) and Balboa ($2/mt), and down in New York ($1/mt)

The price of HSFO at all key ports, barring New York, have recorded gains.

Conversely, New York's VLSFO price has increased, thus widening the port's Hi5 spread to $159/mt today, from yesterday's $148/mt.

New York's VLSFO price benchmark is currently at a premium of $23/mt to Houston.

In Houston, bunker availability is normal across all three conventional fuel grades.

Recommended lead times are about 5-7 days for VLSFO and HSFO, while LSMGO has typically taken 4-5 days over the past week, a trader tells ENGINE.

In Zona Comun, bunker operations are ongoing, but deliveries may be delayed due to strong winds blowing through the anchorage, a source said.

Brent

The front-month ICE Brent contract has gained by $0.54/bbl on the day, to trade at $86.57/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has jumped back above the $85/bbl mark following fresh threats from Iran to broaden the regional conflict to the Red Sea and the Bab al-Mandeb Strait.

Iran has instructed Yemen-based Houthi militants to prepare attacks on the Bab al-Mandeb Strait, if the US strikes Iran’s power infrastructure, Reuters reported.

Bab al-Mandeb is another vital oil chokepoint like the Strait of Hormuz, carrying about 7% of global seaborne oil flows.

Any new attacks in the region threatens to deepen the global energy crisis, as traffic through the Strait of Hormuz is already facing severe disruption.

“Oil prices continue to move higher, with neither the US nor Iran showing any real intent to dial down the latest surge in tensions,” two analysts from ING Bank noted.

Downward pressure:

Brent’s rally was partially capped after US President Donald Trump cancelled plans to impose a 20% fee of a cargo’s value for the US to assist in safely transiting the Strait of Hormuz.

Trump has pivoted from his earlier proposal, focusing instead on forging new trade deals with Gulf countries.

By Gautamee Hazarika and Aparupa Mazumder

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