Americas Market Update 31 Mar

Fuel prices have largely trended upward, while possible delays are expected in GOLA, with a full closure anticipated by the end of the week due to high seas.

IMAGE: Aerial view of Port Newark. Getty Images.

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

• VLSFO prices up in Houston ($44/mt), Santos ($24/mt), Seattle ($11/mt) and Balboa ($6/mt)
• LSMGO prices up in Seattle ($77/mt) and Balboa ($6/mt)
• HSFO prices up in Seattle ($13/mt)

Fuel prices across most ports in the Americas have tracked Brent’s upward movement over the past day.

On the West Coast, the increase in the LSMGO price at port of Seattle over the past session has it currently trading at a discount of $323/mt to Los Angeles.

Los Angeles and Long Beach continue to show decent VLSFO and LSMGO availability while HSFO availability is subject to enquiry. However, most suppliers can deliver booked stems within 7-8 days.

Houston’s VLSFO price has registered the largest increase for the grade.

Bunker demand at the port remains stable, with suppliers recommending lead times of at least seven days for all three conventional fuel grades. Weather conditions are currently conducive for bunkering, a trader tells ENGINE.

Meanwhile, the Galveston Offshore Lightering Area (GOLA) is expected to face possible disruptions from 2–4 April due to high wind gusts and high seas.

Additionally, a full closure and suspension of bunkering operations is expected at the anchorage early morning on 5 April, a source said.

Brent

The front-month ICE Brent contract has gained $3.31/bbl on the day, to trade at $117.17/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has continued to trade above $110/bbl after the US warned of further escalation in the Middle East war.

US President Donald Trump has threatened to "blow up" Iran’s oil wells and power plants, as well as target Kharg Island and its desalination plants, if ongoing negotiations to reopen the Strait of Hormuz yield no outcome.

The threats come “despite [Trump] repeating that the US was in serious discussions with what he called a new regime in Iran to end military operations,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Kharg Island, which is located about 20 miles off Iran’s coast, holds “most of” Iran’s oil export infrastructure, according to Hynes. Targeting the region would reduce a big chunk of Iran’s oil supply.

Downward pressure:

Weighing on Brent’s price, a report by the Wall Street Journal said Trump has indicated a willingness to end the conflict with Iran, even if the Strait of Hormuz remains largely closed.

In a post on Truth Social yesterday, Trump said “great progress has been made” in efforts to resolve the conflict with Iran, reiterating that a potential deal to end the war remains within reach.

“Oil edged lower Tuesday morning after the Wall Street Journal reported that US President Donald Trump told aides he would be willing to end the military campaign in Iran,” two analysts from ING Bank noted.

By Gautamee Hazarika and Aparupa Mazumder

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