Americas Market Update 29 Oct

Fuel prices have moved in mixed directions, and high wind gusts are expected to cause delays at Freeport’s anchorage.

IMAGE: Aerial view of the ports of Long Beach and Los Angeles. Getty Images

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

• VLSFO prices up in New York ($4/mt) and Balboa ($3/mt), unchanged in Los Angeles, and down in Zona Comun ($20/mt) and Houston ($14/mt)
• LSMGO prices down in Zona Comun ($29/mt), Balboa ($27/mt), Houston ($11/mt), New York ($7/mt) and Los Angeles ($2/mt)
• HSFO prices up in Balboa ($12/mt), Houston ($9/mt) and Los Angeles ($2/mt), and unchanged in New York

Houston’s VLSFO price has declined over the past day. A lower-priced 500-1,500 mt VLSFO stem has been fixed in the port at $808/mt. Meanwhile, its HSFO price has increased, narrowing the port's Hi5 spread to $199/mt from $222/mt yesterday.

On the West Coast, Los Angeles’ VLSFO price has held steady. It is currently at a premium of more than $200/mt to both Houston and New York.

Los Angeles’ VLSFO has been priced above that level against both ports since early October. Prompt availability of all three conventional grades is tight in the port, with recommended lead times of 6-8 days, a trader said.

High wind gusts are expected to delay deliveries at the anchorage in Freeport, Bahamas, over the weekend and could disrupt supply operations, a trader said.

Brent

The front-month ICE Brent contract has lost $1.21/bbl on the day, trading at $113.68/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has felt some upward pressure amid signs that Washington could resume military action against Iran in the near term.

The US has warned several Gulf countries to prepare for a short but intense campaign against Tehran, the Wall Street Journal reported.

Besides, another draw in US crude stocks has supported Brent’s price today.

US commercial crude stocks fell by 1.90 million bbls to 410.60 million bbls in the week ending 23 October, according to the US Energy Information Administration (EIA).

This was the fourth straight weekly drop in US crude inventories, ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Brent’s price has come under pressure amid renewed US efforts to revive peace negotiations with Iran.

US Vice President JD Vance sent a letter to Iran’s Security Council chief Mohsen Rezaei, in a bid to restart talks, the Wall Street Journal reported, citing US officials.

Iran’s Foreign Minister Abbas Araghchi said yesterday that Tehran continues to give diplomacy a chance to succeed, Reuters reported.

By Gautamee Hazarika and Aparupa Mazumder

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