Americas Market Update 29 Jan

Bunker fuel prices across the Americas have moved upwards, and bunkering operations have resumed in GOLA.

IMAGE: The Atlantic entrance to the Panama Canal. Getty Images

Changes on the day to 07.00 CST (13.00 GMT) today:

• VLSFO prices up in Houston, Balboa ($15/mt), Los Angeles ($12/mt), New York ($10/mt) and Zona Comun ($8/mt)
• LSMGO prices up in New York ($34/mt), Balboa ($23/mt), Los Angeles ($20/mt), Houston ($17/mt) and Zona Comun ($14/mt)
• HSFO prices up in Balboa ($15/mt), New York ($12/mt), Los Angeles and Houston ($8/mt)

New York’s LSMGO price has recorded the highest gains and is currently trading at premiums of $68/mt to Houston and $74/mt to Los Angeles.

At the New York harbour this week, rough weather conditions have impacted bunker deliveries and cargo operations.

Recommended lead times for VLSFO and HSFO are 4–7 days, while LSMGO is available within 1–2 days this week, according to a trader.

At the Galveston Offshore Lightering Area (GOLA), bunkering operations may be disrupted and delayed until 31 January due to high winds and high seas, a source said.

Bunkering operations, which were suspended on Monday, resumed on Wednesday, though some delays are expected at the anchorage from early morning on 30 January through late morning the following day.

Brent

The front-month ICE Brent contract has gained by $1.97/bbl on the day, to trade at $69.94/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude’s price has risen by more than $2/bbl on renewed supply disruption concerns from the Middle East.

US President Donald Trump has warned of possible military action against Iran, as Washington continues its push to end the OPEC producer’s nuclear ambitions, Reuters reported. A US naval group has arrived in the region, the report added.

“Oil markets continue to strengthen amid growing concern over a possible escalation between the US and Iran,” two analysts from ING Bank noted.

The escalation could potentially disrupt supply from the region, market analysts said. Iran produces about 3.2 million b/d of crude oil.

“President Trump threatened another attack on Iran, urging Tehran to negotiate a nuclear deal,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “This raised the spectre of disruptions to its oil supply,” he added.

Downward pressure:

Kazakhstan’s Tengiz oilfield is expected to reach full production capacity this week, following an unplanned outage due to a fire. This news has capped some of Brent’s gains today.

In the US, the Federal Reserve (Fed) has decided to keep interest rates steady in the range of 3.50% to 3.75%, following three rate cuts in 2025.

The rate decision comes as the US dollar remains under pressure, trading close to a four-year low against major currencies and adding complexity to the Fed’s inflation outlook.

“Oil is the other inflation ghost that will not stay in the basement,” remarked SPI Asset Management managing partner Stephen Innes.

By Gautamee Hazarika and Aparupa Mazumder

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