Americas Market Update 7 Sep

Fuel prices have mostly moved up, and high winds can disrupt operations in St. Eustatius.

IMAGE: Oil tanker moving towards St. Eustatius island in the Caribbean. Getty Images

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

• VLSFO prices up in Zona Comun ($37/mt), Los Angeles ($24/mt), Houston ($17/mt) and New York ($14/mt), and unchanged in Balboa
• LSMGO prices up in Los Angeles ($45/mt), Balboa ($23/mt), Houston ($20/mt) and New York ($16/mt), and down in Zona Comun ($2/mt)
• HSFO prices up in Balboa ($24/mt), Houston ($21/mt), Los Angeles ($7/mt) and New York ($6/mt)

Zona Comun's LSMGO price has decreased despite Brent shooting up over the past session. Bunker operations at the anchorage are ongoing, despite choppy conditions, a source said.

Availability of VLSFO and LSMGO is normal, and lead times of 5-7 days are advised.

Balboa's VLSFO price has remained unchanged, while its HSFO price has increased more than in other major bunker locations. The port's Hi5 spread has narrowed from $132/mt to $108/mt.

In the Caribbean, bunker delays from high wind gusts are expected at St. Eustatius for two days from tomorrow afternoon, a source said.

Brent

The front-month ICE Brent contract has gained by $3.01/bbl on the day from Friday, trading at $97.48/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has moved higher following major escalation in the Middle East region.

The US Navy struck three Iran-linked crude oil tankers over the weekend, the US Central Command (CENTCOM) said on social media platform X.

“The oil market remains well-supported with little sign of peace between the US and Iran,” two analysts from ING Bank noted.

The action came shortly after Iranian forces launched ballistic missiles towards two US warships patrolling regional waters, CENTCOM said.

Meanwhile, Tehran has threatened a new “restricted zone” outside the Strait of Hormuz, Al Jazeera reported.

If imposed, the move “could put additional vessels in the Gulf of Oman at risk", ING Bank analysts added.

Downward pressure:

The total number of rigs drilling for crude oil in the US increased by two on the week to 449 units last week, according to Baker Hughes.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

By Gautamee Hazarika and Aparupa Mazumder

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