Americas Market Update 12 Jan

Fuel prices have moved in mixed directions, and Balboa records healthy bunker demand at the beginning of the year.

IMAGE: Aerial view of the Port of Houston, Texas. Getty Images

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

• VLSFO prices up in Houston ($5/mt), Balboa ($3/mt), Zona Comun ($2/mt), New York ($1/mt), and down in Los Angeles ($1/mt)
• LSMGO prices up in Balboa ($18/mt) and Houston ($8/mt), and down in Zona Comun ($16/mt), Los Angeles ($9/mt) and New York ($2/mt)
• HSFO prices up in Balboa ($3/mt), unchanged in New York, and down in Houston ($3/mt) and Los Angeles ($1/mt)

Houston's VLSFO price has recorded the highest increase in the grade's price among the ports over the past session. Conversely, the port's HSFO price has dipped, widening the port's Hi5 spread to $75/mt today, from $67/mt on Friday.

The port is currently open and bunkering operations are ongoing.

Recommended lead times for all three conventional fuel grades have been extended to at least seven days, as weather-related disruptions and congestion continue to affect deliveries, a source said.

In Balboa, demand has picked up compared to previous weeks. The port's LSMGO price has gained the most across all ports and grades.

It is currently at discounts to nearby Colombian bunkering hubs, at $71/mt to Cartagena, $111/mt to Barranquilla, and $47/mt to Santa Marta.

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

Brent

The front-month ICE Brent contract has gained $0.92/bbl on the day from Friday to trade at $63.34/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude’s price has rallied due to growing geopolitical unrest in the Middle East.

Oil market analysts are concerned that the ongoing protests in Iran, that began two weeks ago, could threaten oil supply.

“Protests [in Iran] have continued for more than a week amid concerns of a collapse in the local economy,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The OPEC member pumps around 3.2 million b/d of crude oil, making it the fourth-largest producer of the group.

“The situation puts at least 1.9mb/d [1.9 million b/d] of oil exports at risk of disruption,” Hynes added.

Downward pressure:

Venezuela is expected to resume oil exports soon, Reuters reported. This news has put some downward pressure on Brent’s price today.

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

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

“US Treasury Secretary Scott Bessent has said that further sanctions against Venezuela may be lifted as early as this week to facilitate oil sales,” two analysts from ING Bank added.

By Gautamee Hazarika and Aparupa Mazumder

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