Americas Market Update 28 Sep

Fuel prices have mostly declined, and adverse weather conditions are expected to disrupt bunker operations in New York.

IMAGE: Aerial view of dry docks and shipping containers in New York. Getty Images

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

• VLSFO prices up in Houston ($32/mt), Zona Comun ($20/mt) and New York ($5/mt), and down in Los Angeles ($19/mt) and Balboa ($18/mt)
• LSMGO prices up in New York ($30/mt) and Houston ($23/mt), and down in Balboa ($32/mt) and Los Angeles ($12/mt), and
• HSFO prices up in New York ($44/mt) and Balboa ($8/mt), and down in Los Angeles ($7/mt) and Houston ($1/mt)

New York's HSFO price has recorded the biggest gain across all three conventional grades over the past session. A higher-priced, 500-1,500 mt stem, fixed at $634/mt, has offered support to the benchmark.

Strong wind gusts are expected to disrupt bunker operations in New York today. Suppliers could require standby tugs, and deliveries could be suspended during periods of high winds, a source said.

Balboa's VLSFO price has declined, while its HSFO price has risen. The port's Hi5 spread has narrowed to $30/mt today, from $56/mt on Friday. A lower-priced, 500-1,500 mt stem, fixed at $725/mt, has weighed on the benchmark.

Availability is good across all three conventional grades. VLSFO and LSMGO stems require lead times of 3-4 days, and HSFO needs a notice of 5-7 days, a source said.

Brent

The front-month ICE Brent contract has gained $1.48/bbl on the day from Friday, trading at $106.42/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has moved close to $110/bbl as peace negotiations between Washington and Tehran remain deadlocked.

US President Donald Trump has dismissed the seven-day peace deal proposed by Tehran on the sidelines of the United Nations General Assembly (UNGA) in New York last week.

The proposal, which has since been rejected, would have reopened the Strait of Hormuz to commercial navigation in exchange for Washington releasing all frozen Iranian assets.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US increased by three over the week to 455 units last week.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

By Gautamee Hazarika and Aparupa Mazumder

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