Americas Market Update 15 Sep

Fuel prices have mostly recorded losses, and operations in Zona Comun are expected to face disruptions due to rough weather.

IMAGE: Maersk and CMA CGM container ships docked in Los Angeles. Port of Los Angeles

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

• VLSFO prices up in Los Angeles ($14/mt), and down in Zona Comun ($90/mt), Balboa ($35/mt), New York ($15/mt) and Houston ($12/mt)
• LSMGO prices up in Zona Comun ($90/mt) and New York ($4/mt), and down in Balboa ($46/mt), Los Angeles ($38/mt) and Houston ($36/mt)
• HSFO prices down in Balboa ($38/mt), New York ($13/mt), Los Angeles ($10/mt) and Houston ($3/mt)

Los Angeles' VLSFO price is the only one to rise for the grade across major ports in the Americas over the past day. A higher-priced, 500-1,500 mt stem, fixed at $1,050/mt, pushed the benchmark up.

Meanwhile, the port's HSFO price has fallen. These movements have widened the port's Hi5 spread to $251/mt, from $227/mt on Monday.

Bunker demand at the ports of Los Angeles and Long Beach has picked up this week. Suppliers can offer LSMGO and VLSFO within 4-7 days, while HSFO requires 5-7 days.

Over at Zona Comun, bunkering operations could be disrupted on the afternoon of 15 September by high wind gusts, a source said.

Brent

The front-month ICE Brent contract has lost $3.01/bbl on the day, trading at $105.89/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has remained largely steady, continuing to trade above the $107/bbl threshold, as the conflict in the Middle East persists.

What started as a US-Iran confrontation, has rapidly metastasized into a regional crisis, prompted by the escalation between Yemen’s Iran-aligned Houthi militants and Saudi Arabia.

The Houthis have targeted Saudi Arabia’s military facilities and infrastructure this week, after hitting Riyadh’s crucial 1,200 km East-West Pipeline, a favourable alternative to export crude through the Red Sea terminal at Yanbu, to circumvent the Strait of Hormuz.

“Oil prices remain firmly supported, with that floor unlikely to give way until markets get clearer visibility on Saudi supply after the East–West pipeline shutdown,” two analysts from ING Bank noted.

Downward pressure:

While there are no major downward pressures acting on Brent’s price today, market analysts will keep an eye out for US crude stocks data scheduled for release later this week.

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

By Gautamee Hazarika and Aparupa Mazumder

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