Americas Market Update 6 Mar
Fuel prices have increased across all major hubs in the Americas, and prolonged delays are expected in Zona Comun over the coming days.
IMAGE: Oil refinery with a view to downtown Houston. Getty Images.
Changes on the day to 07.00 CST (13.00 GMT) today:
- VLSFO prices up in Los Angeles ($65/mt), Zona Comun ($64/mt), Houston ($49/mt), Balboa ($44/mt) and New York ($40/mt)
- LSMGO prices up in Balboa ($118/mt), Los Angeles ($101/mt), New York ($93/mt), Houston ($82/mt) and Zona Comun ($77/mt)
- HSFO prices up in Los Angeles ($63/mt), Balboa ($44/mt), New York ($29/mt) and Houston ($14/mt)
Balboa's LSMGO price has gained by the highest measure across all fuel grades and ports in the past day. Meanwhile, its Hi5 spread remains steady at $129/mt.
In Panama, bunker demand has increased significantly over the past few weeks. Supply at the ports of Balboa and Cristobal is currently tight across all three conventional fuel grades and requires lead times of at least five days, a bunker trader tells ENGINE.
LSMGO prices have risen above $1000/mt across bunkering hubs in the Americas, influenced by the global impact of the US-Iran war.
In New York, the last time similar price levels for the grade were seen was two years ago, in 2023.
Currently at the port, HSFO remains tight and requires lead times of at least 7–9 days. VLSFO lead times stand at 5–6 days, while LSMGO has good availability and can be delivered within 2–3 days, a source tells ENGINE.
In Zona Comun, bunker deliveries remain suspended as high wind gusts blow through the anchorage location, causing disruptions to operations.
"Prolonged delays are expected over the next several days," a trader tells ENGINE.
Brent
The front-month ICE Brent contract has increased by $5.06/bbl on the day, to trade at $88.62/bbl at 7.00 CST (13.00 GMT) today.
Upward pressure:
The US and Israel’s large-scale military actions on Iran has continued to dominate oil market sentiment this week.
In the latest round of cross-border firing, the Israeli military has launched air strikes on Hezbollah-administered areas in Lebanon, Reuters reported. Meanwhile, Iran said it targeted Tel Aviv with several missiles, the report added.
Earlier this week, a commercial ship anchored at 30 nautical miles (NM) south-east of the port of Mubarak Al Kabeer in Kuwait, reported a strike resulting in oil leakage from a cargo tank, the United Kingdom Maritime Trade Operations (UKMTO) said.
“Oil is not just a commodity. It is a confidence asset. And confidence begins to fracture the moment traders see tankers themselves becoming targets,” SPI Asset Management managing partner Stephen Innes said.
Downward pressure:
The US Department of Treasury (DoT) has issued a 30-day waiver allowing India to resume some purchase of Russian crude oil amid the ongoing US-Israel conflict with Iran.
This news has added some downward pressure on Brent today, according to two analysts from ING Bank.
The measure only allows transactions involving oil already stranded at sea, US treasury secretary Scott Bessent said.
“The waiver allows the sale of Russian crude and products to India that were loaded onto vessels before 5 March and remains valid until 4 April,” ING Bank’s analysts said. “This essentially allows floating Russian oil to reach India,” they added.
By Gautamee Hazarika and Aparupa Mazumder
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