Americas Market Update 24 Sep

Prices have risen across major ports in the Americas, and bunkering in New York could be suspended due to strong wind gusts.

IMAGE: An aerial view of a container ship passing through New York. The port of New York and New Jersey

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

• VLSFO prices up in Zona Comun ($45/mt), Los Angeles ($34/mt), Houston ($28/mt), New York ($17/mt) and Balboa ($3/mt)
• LSMGO prices up in Zona Comun ($110/mt), Houston ($57/mt), Los Angeles ($53/mt), New York ($47/mt) and Balboa ($22/mt)
• HSFO prices up in Balboa ($28/mt), Los Angeles ($25/mt), Houston and New York ($16/mt)

Zona Comun's LSMGO price has increased by the largest margin across all grades and all the major Americas' ports over the past session.

Operations are currently suspended at the anchorage, and prolonged delays are expected until the end of the week, a trader said.

New York's VLSFO and HSFO prices have risen by similar margins over the past day, nudging the Hi5 spread up by $1/mt, to $253/mt.

Availability is normal at the port, with VLSFO and HSFO requiring 5–7 days, while LSMGO can be delivered within 3–6 days, a source said.

Deliveries at the port could be disrupted between 24-27 September due to strong wind gusts. Suppliers may require standby tugs in high winds, and operations could be suspended altogether, the source added.

Brent

The front-month ICE Brent contract has gained $4.53/bbl on the day, trading at $105.18/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has reversed course, surpassing the $105/bbl mark, as hopes of a diplomatic breakthrough took a backseat at the United Nations General Assembly summit.

US President Donald Trump threatened Iran with “annihilation” during his speech at the summit, while Iranian President Masoud Pezeshkian retaliated to Trump’s remarks by stating that Tehran will not bow down to the US’ “bullying mentality.”

Oil prices continue to find steady support amid these latest developments, as a swift end to the Middle East conflict remains unlikely, market analysts noted.

Oil prices remain more than 60% higher year-to-date, as ongoing disruption in the Middle East continue to strain the global oil market, two analysts from ING Bank noted.

Downward pressure:

Brent crude’s price has felt some downward pressure after the US Energy Information Administration (EIA) reported a rise in US crude stocks.

Commercial US crude oil inventories increased by around 3 million bbls, to 426.4 million bbls, in the week ending 18 September, according to data from the EIA.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure on Brent's price.

By Gautamee Hazarika and Aparupa Mazumder

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