Americas Market Update 9 Dec

Bunker fuel prices in the Americas have moved in mixed directions, and deliveries have been suspended in Zona Comun.

IMAGE: Container ship docked in the Port of Balboa. Getty Images

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

• VLSFO prices up in Los Angeles ($20/mt), Zona Comun ($18/mt), Houston ($13/mt), Balboa ($6/mt) and New York ($5/mt)
• LSMGO prices up in Zona Comun ($43/mt), Los Angeles ($14/mt), New York ($9/mt), Houston ($6/mt), and down in Balboa ($15/mt)
• HSFO prices up in New York ($5/mt) and Houston ($4/mt), and down in Balboa ($6/mt) and Los Angeles ($2/mt)

Balboa’s LSMGO price has been an outlier and has dipped over the past day, after a lower-priced 50–150 mt LSMGO stem was fixed at the port at $632/mt, putting downward pressure on the benchmark.

Availability at Balboa and Cristobal remains good, with all three grades deliverable within recommended lead times of 4–7 days.

Zona Común’s LSMGO price has jumped by the highest measure across all ports and all grades and is currently at premiums of $50/mt to Buenos Aires and $43/mt to Bahia Blanca in Argentina.

The anchorage has suspended bunkering operations due to high wind gusts.

"Prolonged delays are expected for deliveries due to both backlog and reloading delays," a trader tells ENGINE.

Advised lead times have been extended to around 8–10 days this week.

Brent

The front-month ICE Brent contract has gained $1.52/bbl on the day to trade at $62.42/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent’s price has moved higher after the US Coast Guard seized two tankers, allegedly carrying sanctioned Venezuelan oil.

The first tanker, MV Bella 1, was seized in the northern Atlantic Ocean, while the second vessel, MT Sophia, was captured in the Caribbean Sea.

“The control that the US intends to exert over the Venezuelan oil industry also raises questions over the future of Venezuela’s membership within OPEC,” two analysts from ING Bank said.

The move comes days after Washington detained Venezuelan President Nicolas Maduro from the country’s capital Caracas.

“This action adds some supply risk to the market in the short term,” ING Bank’s analysts added.

Downward pressure:

Brent’s price gains were partially capped by uncertainty surrounding Venezuela’s oil assets, according to market analysts.

Earlier this week, US President Donald Trump said Venezuela’s interim administration will be “turning over” between 30 million to 50 million bbls of sanctioned oil, to be sold at the market price.

The end of Maduro's presidency in Venezuela could add fresh barrels to an already oversupplied market, analysts said.

“A smooth transition means the potential for stronger Venezuelan supply,” ING Bank’s analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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