Americas Market Update 22 Sep

Fuel prices across the Americas have mostly declined, and bunkering operations have resumed at Zona Comun this morning.

IMAGE: Houston Ship Channel. Port Houston

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

• VLSFO prices down in Zona Comun ($46/mt), Houston ($22/mt), Los Angeles, Balboa ($21/mt) and New York ($12/mt)
• LSMGO prices up in Zona Comun ($8/mt), and down in Los Angeles ($33/mt), Balboa ($30/mt), Houston ($28/mt) and New York ($12/mt)
• HSFO prices down in Balboa ($32/mt), Los Angeles ($29/mt), New York ($8/mt) and Houston ($2/mt)

Zona Comun's VLSFO price has recorded the biggest decline for the grade across major ports in the Americas. A lower-priced, 500-1,500 mt stem, fixed at the anchorage at $865/mt, has weighed on the benchmark.

Bunkering operations resumed at the anchorage earlier this morning, after being suspended on Monday due to high wind gusts. Prolonged delays are expected between 23-25 September, a source said.

Houston's HSFO price has recorded the smallest dip for the grade over the past day. A higher-priced, 500-1,500 mt stem, fixed at $560/mt, may have cushioned the grade's decline.

Bunker demand has been healthy at the port, and prompt availability is a bit tight across most suppliers, a trader said. HSFO and LSMGO require lead times of 5-7 days, while VLSFO requires 5-6 days.

Brent

The front-month ICE Brent contract has lost $2.30/bbl on the day, trading at $98.82/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has felt some upward pressure as persistent Middle East tensions continue to support risk premiums.

The US has intensified pressure on Iran, warning that it will shut down Iranian airlines starting tomorrow.

Last week, Washington passed a new bill that extends the Iran Sanctions Act of 1996 through 2031, allowing the US President to impose sanctions on entities doing business with Iran's energy sector.

Downward pressure:

Brent crude’s price has shed last week’s gains, as the market shifted its focus to the United Nations General Assembly summit scheduled to take place in New York this week.

Iranian President Masoud Pezeshkian will be present at the high-stakes summit.

Market participants are hoping for a diplomatic breakthrough at the summit, banking on peace talks to pave the way for a quick resolution of the Middle East conflict – ultimately reopening the Strait of Hormuz to commercial navigation.

US President Donald Trump said that he is open to meeting his Iranian counterpart on the sidelines of the summit, according to media reports.  

Brent crude’s price moved lower “as markets weighed hopes for constructive discussions at this week's UN General Assembly,” two analysts from ING Bank reported.

By Gautamee Hazarika and Aparupa Mazumder

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