Americas Market Update 17 Apr

Bunker prices are sharply down with Brent after Iran said vessels can transit the Strait of Hormuz while the ceasefire lasts, and deliveries in Zona Comun are expected to be disrupted until next Tuesday.

IMAGE: A fully loaded container ship heading toward the Port of Houston. Getty Images

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

• VLSFO prices down in Houston ($58/mt), Los Angeles ($53/mt), Zona Comun ($44/mt), New York ($28/mt) and Balboa ($23/mt)
• LSMGO prices down in Los Angeles ($79/mt), Zona Comun ($62/mt), New York ($50/mt), Houston ($46/mt) and Balboa ($44/mt)
• HSFO prices down in Los Angeles ($45/mt), Houston ($38/mt), New York ($29/mt) and Balboa ($3/mt)

Fuel prices across key ports in the Americas have tracked Brent’s decline over the past day.

VLSFO prices have dropped the most in Houston, which has it at discounts of $240/mt to Los Angeles and $84/mt to New York.

Bunker demand is firm in Houston, and availability normal with lead times of 5-7 days for VLSFO and HSFO, and 3-4 days for LSMGO, a trader said.

Deliveries could be disrupted in Zona Comun until 21 April. High wind gusts are forecast to blow around the anchorage location. Deliveries will be suspended if wind speeds exceed 20 knots, a source said.

VLSFO and LSMGO supply has remained stable in Zona Comun over the past week, with lead times between 5–6 days advised.

Brent

The front-month ICE Brent contract has lost $5.28/bbl on the day, to trade at $91.20/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Commercial US crude stocks which fell by a modest 900,000 bbls to 464 million bbls in the week ending 10 April, according to US Energy Information Administration data. This went against market expectations of a small build.

Downward pressure:

Iran said on Thursday that the Strait of Hormuz would remain open to commercial shipping for the duration of a ceasefire, removing the single biggest supply-risk premium priced into the market. Brent fell sharply on the announcement. The move suggests the market had been pricing in a prolonged closure of the chokepoint.

US President Donald Trump said a deal between Washington and Tehran could be reached soon. He told reporters that Iran had agreed to a potential nuclear deal, signalling further rounds of talks between the two sides.

“We have a lot of agreement with Iran, and I think something is going to happen very positive,” Trump said.

“The futures market appears to be responding more to headlines over how the war may evolve, with hopes that we could see a resolution in the coming weeks,” Patterson added.

By Gautamee Hazarika and Aparupa Mazumder

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