Americas Market Update 6 Jan

Bunker fuel prices have largely moved up, and all vessel transits through the Houston Ship Channel have been suspended.

IMAGE: Heavy industrial rigs at a shipyard near Houston, Texas. Getty Images

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

• VLSFO prices up in Houston ($16/mt), New York ($12/mt) and Zona Comun ($4/mt), and down in Balboa ($14/mt) and Los Angeles ($5/mt)
• LSMGO prices up in New York ($19/mt), Balboa ($15/mt), Zona Comun ($14/mt), Los Angeles ($12/mt) and Houston ($11/mt)
• HSFO prices up in New York ($12/mt), Houston ($7/mt) and Los Angeles ($2/mt), and down in Balboa ($8/mt)

Balboa's VLSFO price has moved against the general market direction and fallen in the past day. Two lower-priced 150–500 mt VLSFO stems have been booked in the port at $422/mt and $445/mt, which have put downward pressure on the benchmark.

VLSFO and LSMGO are available from most suppliers in Panama within lead times of 3–7 days, while HSFO requires at least five days of lead time, a source said.

The ongoing fog season has brought dense fog and poor visibility to the Houston Ship Channel, leading the Houston Pilots Association to suspend all vessel transits through the waterway on Tuesday.

The Sabine Neches Waterway has also been closed due to reduced visibility along the channel.

Thick fog and reduced visibility is forecast in Corpus Christi this morning, and in Freeport, Galveston, Port Arthur, Lake Charles and New Orleans for periods until Friday. This can hold up vessels from safe passage into and out of these port areas and potentially create delays.

New York’s LSMGO price has gained over the past day and is currently at a premium of $84/mt over Houston.

Bunker availability is steady in New York, with all three conventional grades being available with 4–6 days of lead time over the past week.

Brent

The front-month ICE Brent contract has risen by $0.82/bbl on the day to trade at $62.01/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude’s price has moved higher as geopolitical concerns have rekindled in the global oil market following the detention of Venezuelan President Nicolás Maduro by US troops.

US President Donald Trump also confirmed that the US embargo on Venezuelan oil would remain in place.

Venezuela is one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC) and controls almost 17% of global oil reserves, or 303 billion bbls, Reuters reports.

“While the Trump administration has been taking a more hawkish stance against Venezuela in recent months, developments over the weekend have led to shockwaves around the globe,” remarked two analysts from ING Bank.

The outlook for Venezuelan oil production will hinge on the trajectory of US sanctions policy, according to market analysts.

The Trump-led US administration’s move “has potentially significant implications for the oil market,” ING Bank’s analysts added.

Downward pressure:

Ample global oil supply as the market moves into 2026 has capped gains in Brent crude’s price.

While recent developments in Venezuela and the unprecedented capture of its President by the US, have heightened geopolitical risk, market analysts warn that the possible return of Venezuelan barrels could add pressure to an already oversupplied market.

The concerns come as Trump said Washington would take control of the OPEC member.

“The reaction in oil prices following the US arrest of Venezuelan President Nicolas Maduro suggests the market is more focused on the potential for supply increases in the longer term,” ING Bank’s analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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