Americas Market Update 19 May

Fuel prices have moved in mixed directions, and deliveries in GOLA have been suspended due to rough sea conditions at the anchorage.

IMAGE: Heavy industrial rigs at a shipyard near Houston, Texas. Getty Images

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

• VLSFO prices up in Zona Comun ($38/mt) and New York ($22/mt), and down in Los Angeles ($21/mt), Houston ($9/mt) and Balboa ($7/mt)
• LSMGO prices up in Zona Comun ($32/mt), New York ($30/mt), Houston ($28/mt) and Balboa ($16/mt), and down in Los Angeles ($13/mt)
• HSFO prices up in Los Angeles ($61/mt), New York ($32/mt), Balboa ($30/mt) and Houston ($7/mt)

Houston's LSMGO price has increased after a higher-priced 50-150 mt LSMGO stem was booked at the port at $1,192/mt, which has put upward pressure on the benchmark.

Meanwhile, the port's VLSFO price has dipped after a lower-priced 150-500 mt VLSFO stem was booked at the port at $843/mt, putting downward pressure on the benchmark.

Prompt availability is tight for all three conventional fuel grades in Houston, a trader tells ENGINE.

Recommended lead times for HSFO and VLSFO are currently around 8–10 days, while LSMGO availability is comparatively better with lead times of 6–7 days.

In the Galveston Offshore Lightering Area (GOLA), bunker deliveries have been suspended due to high seas exceeding 1.5 metres.

Disruptions are expected between 19–20 May, with operations likely to resume either later this evening or early tomorrow, a trader tells ENGINE.

Brent

The front-month ICE Brent contract has gained $2.81/bbl on the day, to trade at $110.35/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has held steady as ongoing negotiations between Iran and the US remain strained.

The White House said a proposal delivered by Iran on Sunday “lacked any meaningful improvement” from previous versions, according to ANZ Bank’s senior commodity strategist Daniel Hynes.

The remarks come after US President Donald Trump threatened to resume military action against Iran while maintaining the US blockade in the Strait of Hormuz.

The oil market “remains extremely sensitive to Iran-related headlines amid current supply disruptions,” two analysts from ING Bank noted.

Downward pressure:

Brent crude’s price has felt some downward pressure after Trump backtracked from his earlier hardline remarks to resume strikes on Iran.

The shift in Trump’s plan comes at the request of the Saudi Arabia, Qatar and the UAE, he claimed.

Oil prices pared some gains “after President Trump said he had called off a military attack on Iran due to serious negotiations taking place,” Hynes added.

By Gautamee Hazarika and Aparupa Mazumder

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