Americas Market Update 3 Aug

Fuel prices across the Americas have declined, while high winds and a long-period swell could disrupt bunkering operations in GOLA through Wednesday.

IMAGE: Ships docked at the Port of Galveston, Texas. Getty Images

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

• VLSFO prices down in Zona Comun ($61/mt), Balboa ($59/mt), Los Angeles ($25/mt), New York ($20/mt) and Houston ($17/mt)
• LSMGO prices down in Balboa ($127/mt), Houston ($83/mt), New York ($33/mt) and Los Angeles ($9/mt)
• HSFO prices down in Houston ($28/mt), Los Angeles ($26/mt), New York ($19/mt) and Balboa ($11/mt)

Amongst the key Americas ports, Balboa's LSMGO price has declined the most, after a lower-priced stem, booked at $1,309/mt, put downward pressure on the benchmark.

The port's VLSFO price has also declined after a lower-priced stem, fixed at $729/mt, put downward pressure on the benchmark.

The Panamanian ports have good availability across all three conventional fuel grades, a source said. At Balboa and Cristobal, HSFO and LSMGO can be delivered within 3-4 days. VLSFO can be delivered in under five days.

In the US Gulf, bunkering operations at the Galveston Offshore Lightering Area (GOLA) are facing disruptions due to high wind gusts and long-period swells. These conditions are expected to persist between 3-5 August, a source said.

Brent

The front-month ICE Brent contract has lost $7.41/bbl on the day from Friday, to trade at $82.99/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has felt some upward pressure, as the prospect of worsening supply disruptions in the Middle East continues to hang over the market.

On Friday, Tehran launched attacks on US military assets, including the Ahmad al-Jaber Air Base in Kuwait and facilities at Bahrain’s Sheikh Isa Air Base.

The Middle East conflict has “spread well beyond Iran and the United States,” according to SPI Asset Management managing partner Stephen Innes.

The latest attacks come shortly after Saudi Arabian energy infrastructure came under attack, prompting Washington and Riyadh to launch a joint military operation against Iran-aligned militias.

“Saudi energy infrastructure has been attacked. Iraqi militias, the Houthis and other Iranian-aligned groups have widened the battlefield across the Gulf and Red Sea,” Innes remarked.

Downward pressure:

Oil prices have opened the week on a lower footing, after US President Donald Trump called off a planned round of military strikes on Iran, fuelling hopes of a diplomatic breakthrough.

“The perimeters of a deal have been agreed to,” Trump said on Truth Social, putting some downward pressure on Brent.

“The immediate threat of escalation has eased, but Iran has yet to confirm that a workable diplomatic understanding exists,” Innes said.

Additionally, Iran’s foreign minister Abbas Araghchi said that negotiations with Oman regarding a new shipping arrangement via the Strait of Hormuz are in its final stages.

“Until tankers begin moving safely through Hormuz again, claims of diplomatic progress should be treated cautiously,” Innes added.

By Gautamee Hazarika and Aparupa Mazumder

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