Americas Market Update 17 Mar

Regional bunker prices have mostly gained, and deliveries have been suspended by rough seas in GOLA.

IMAGE: The Statue of Liberty seen from New York Harbor. Getty Images

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

• VLSFO prices up in Houston ($36/mt) and New York ($29/mt), and down in Balboa ($37/mt)
• LSMGO prices up in Houston ($62/mt), New York ($9/mt) and Zona Comun ($5/mt)
• HSFO prices up in Houston ($44/mt) and Balboa ($3/mt)

Balboa's VLSFO price has dipped, moving against the broader market direction and Brent's upward trend. The port's HSFO price has gained slightly to narrow its Hi5 spread by $40/mt to $118/mt.

Houston's VLSFO price has recorded the largest gain for the grade and is currently at a premium of $28/mt over New York's.

Houston had VLSFO at a $59/mt discount to New York a month ago.

In New York, potential disruptions from high wind gusts are expected through today, and operations are currently suspended in Stapleton, a source said.

Suppliers are recommending lead times of 7–8 days for HSFO and VLSFO in New York, while LSMGO requires around 4-6 days.

Bunker operations are currently also suspended at the Galveston Offshore Lightering Area (GOLA) due to strong winds and rough sea conditions. Operations are expected to resume on Tuesday morning.

All three conventional bunker grades require lead times of over a week at GOLA, a source said.

Brent

The front-month ICE Brent contract has gained by $0.23/bbl on the day, to trade at $101.95/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude has traded above $100/bbl so far this week, as the conflict in the Middle East has shown no signs of easing in its third week.

Last week, Iran said the world should brace for oil at $200/bbl as its forces continue to target commercial vessels transiting the Strait of Hormuz, Reuters reported.

“There have been no signs of de-escalation,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile, US forces have hit Iranian military bases on the strategic Kharg Island. US President Donald Trump warned that Washington could target Tehran’s key oil infrastructure on the island if the Strait of Hormuz remains closed.

“Oil prices spiked… as the US attacked Iran’s oil export lifeblood, Kharg Island,” Price Futures Group’s senior market analyst Phil Flynn said.

Downward pressure:

The International Energy Agency (IEA) has announced a major release of 400 million bbls from strategic reserves to ease the price shock that is currently rattling the global oil market. The news has put some downward pressure on Brent’s price.

The IEA’s pledge marks the “biggest emergency drawdown in IEA history – aimed at cooling off the red-hot crude market amid the ongoing chaos in the Middle East with Iran,” Flynn said.

Member countries in the Americas have committed 195.8 million bbls. Asia and Oceania members have pledged 108.6 million bbls, while Europe has committed 107.5 million bbls, the IEA said.

“The US is ponying up 172 million barrels, Japan chipping in 80 million, and EU heavyweights such as Germany and Austria pledging their shares,” Flynn added.

By Gautamee Hazarika and Aparupa Mazumder

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