Americas Market Update 17 Sep

Bunker fuel prices have declined, and demand has picked up in US West Coast ports.

IMAGE: Cargo containers being offloaded in the Port of Los Angeles. Getty Images

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

• VLSFO prices down in Zona Comun ($37/mt), Houston ($34/mt), New York ($32/mt), Balboa ($29/mt) and Los Angeles ($2/mt)
• LSMGO prices down in Zona Comun ($84/mt), New York ($57/mt), Balboa ($53/mt), Houston ($34/mt) and Los Angeles ($13/mt)
• HSFO prices down in Houston ($48/mt), Balboa ($34/mt), New York ($22/mt) and Los Angeles ($17/mt)

Los Angeles has recorded the smallest declines for all three conventional grades across major ports in the Americas over the past day.

A higher-priced 150-500 mt VLSFO stem was fixed in the port at $1,115/mt, and a higher-priced 0-50 mt LSMGO stem was fixed at $1,750/mt.

Bunker demand on the US West Coast has picked up compared with previous weeks, a trader said.

Availability is normal at the ports of Los Angeles and Long Beach, where all three conventional grades require lead times of 4-7 days.

At the Galveston Offshore Lightering Area (GOLA), high winds are forecast at intervals between 17-19 September and could disrupt bunker operations, a source said.

Brent

The front-month ICE Brent contract has lost $5.55/bbl on the day, trading at $101.95/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude's price has continued to trade well above the $100/bbl threshold amid the Middle East conflict.

During his visit to Beijing, Iran’s foreign minister Abbas Araghchi said Iran welcomed a diplomatic resolution to the ongoing crisis in the Middle East, while remaining prepared to defend its national sovereignty, Al Jazeera reported.

“Today's decisions will decide future strategic balance in the region, with immeasurable knock-on effects,” Araghchi said on social media platform X.

As of Tuesday, nine vessels attempted to transit the Strait of Hormuz – two inbound and seven outbound – market intelligence provider Windward reported, as vessel traffic remains well below the pre-war average of 140 daily transits.

Downward pressure:

The US Federal Open Market Committee (FOMC) has increased its key interest rate by 0.25 percentage points to the range of 3.75-4%, marking the first hike since 2023.

Brent has retreated following the US Federal Reserve’s (Fed) announcement, pulled lower by a stronger US dollar.

Higher interest rates in the US can dampen demand growth and make dollar-denominated commodities like oil more expensive for holders of other currencies.

The US Fed’s decision comes on the heels of the recent escalation in the Middle East, which has spiked Brent and complicated the US central bank’s inflation outlook as it remains committed to achieving a 2% inflation rate over the longer run.

The oil market has “already moved on from the hike itself and into the only debate that really matters now: whether the Fed can deliver another one,” SPI Asset Management managing partner Stephen Innes noted.

By Gautamee Hazarika and Aparupa Mazumder

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