Americas Market Update 10 Mar

Prices across the Americas have mostly declined, and VLSFO and LSMGO are tight in Houston.

IMAGE: Houston Ship Channel. Port Houston

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

• VLSFO prices up in Zona Comun ($63/mt) and Balboa ($14/mt), and down in Houston ($103/mt)
• LSMGO prices down in Houston ($253/mt), Balboa ($193/mt), Zona Comun ($89/mt) and New York ($86/mt)
• HSFO prices up in New York ($7/mt), and down in Houston ($21/mt)

LSMGO prices have fallen sharply in key bunker locations in the Americas, with Houston recording the largest decline.

Lower-priced LSMGO stems fixed in Houston at $1,105-1,170/mt in the past day have added downward pressure on the benchmark. The port’s LSMGO price is now at discounts of $215/mt to Zona Comun, $150/mt to New York and $60/mt to Balboa.

In Houston, bunker fuel demand is steady. VLSFO and HSFO are tight for prompt delivery and require at least 7–10 days of lead time. LSMGO can be delivered by most suppliers within 5–7 days.

In New York, a higher-priced 50-150 mt LSMGO stem fixed at $1,281/mt has provided upward pressure to the benchmark, cushioning some of its loss.

HSFO remains slightly tight in New York and requires lead times of at least 7–9 days to secure. VLSFO lead times stand at 5–6 days, while LSMGO is in good availability and can be delivered within 2–3 days, a source tells ENGINE.

Brent
The front-month ICE Brent contract has lost by $11.43/bbl on the day, to trade at $92.19/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Concerns over smooth transit through the Strait of Hormuz continues to support oil prices after Iran’s Revolutionary Guards said it would not allow crude oil to be shipped from the Middle East if US and Israeli attacks continue.

The global oil market “will need to see a resumption of oil flows through the Strait of Hormuz to sustain a move lower in oil prices,” two analysts from ING Bank said.

Downward pressure:

Brent futures have fallen after climbing above $100/bbl in the previous session, as the conflict between the US, Israel and Iran has shown signs of de-escalation.

US President Donald Trump yesterday said that the war could end earlier than his previously stipulated timeframe of four weeks, Reuters reported. However, he cautioned that the US could intensify attacks if Iran blocks traffic through the Strait of Hormuz.

Additionally, the Group of Seven (G7) developed countries announced yesterday that they were prepared to take necessary steps to curb rising global oil prices but refrained from committing a joint release of oil from emergency reserves.

Reports that “G7 finance ministers were considering a significant release of oil from strategic reserves, along with comments from President Trump suggesting that the war might end soon, sent prices plunging later in the session,” two analysts from ING Bank noted.

By Samantha Shaji and Shilpa Sharma

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