Americas Market Update 17 Dec

Fuel prices have moved in mixed directions, and fuel availability is expected to tighten in Houston and New York at the end of the year.

IMAGE: Aerial view of oil tankers loading fuel at a refinery near Houston. Getty Images.

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

• VLSFO prices up in Balboa ($9/mt), Los Angeles, New York ($2/mt) and Zona Comun ($1/mt), and down in Houston ($2/mt)
• LSMGO prices up in Zona Comun ($13/mt) and Balboa ($6/mt), and down in Los Angeles ($12/mt), New York ($3/mt) and Houston ($2/mt)
• HSFO prices up in Los Angeles, unchanged in Houston and New York, and down in Balboa ($1/mt)

Balboa’s VLSFO price has posted the highest gain over the past day, among other key ports for the grade. This could have been influenced by a slightly higher-priced 500–1500 mt VLSFO stem, fixed at $428/mt, which put upward pressure on the benchmark.

Bunker demand in Panama has been reported to be steady.

Meanwhile, in Houston and New York, bunker fuel availability for all three conventional grades is expected to tighten, as suppliers have begun maintaining lower-than-usual inventories toward the end of the year, a source told ENGINE.

This could lead to longer lead times in the coming weeks, and limited availability of some grades at the ports.

In Argentina's Zona Comun, the anchorage's LSMGO price has gained $13/mt, putting it at a premium of $211/mt to the nearby Brazilian bunkering spot of Santos. LSMGO prices typically maintain heavy premiums at Argentinian ports compared with Brazilian ports.

Weather conditions at Zona Comun have remained turbulent, with high wind gusts threatening delays to bunker deliveries, a source said.

Brent

The front-month ICE Brent contract has gained $0.17/bbl on the day, to trade at $59.90/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude’s price has erased earlier losses and climbed back above the $60/bbl mark after Washington tightened sanctions on Venezuela.

US President Donald Trump has declared a complete ban on sanctioned oil tankers carrying Venezuelan oil.

Washington has “positioned warships, aircraft and troops near Venezuela’s coast,” according to ANZ Bank’s senior commodity strategist Daniel Hynes.

The development comes amid heightened tension between the two oil-producing nations after the US intercepted a sanctioned oil tanker off Venezuela’s coast and sanctioned six additional vessels accused of carrying Venezuelan oil last week.

“Crude futures were staging modest gains… after US President Donald Trump designated the Venezuelan government a 'terrorist organisation'," remarked VANDA Insights’ founder Vandana Hari.

Downward pressure:

Brent’s gains have been capped by progress in Russia-Ukraine ceasefire talks, as market analysts say a deal could ease energy-related sanctions on Moscow and return additional barrels to a global market already facing oversupply concerns.

Ukrainian President Volodymyr Zelensky said earlier this week that peace talks with the US had made progress and that an agreement could be reached soon, according to media reports.

“The end to the Russia-Ukraine war brings with it the prospect of Russian crude flowing onto a market that is already seeing rising supply from major producers such as OPEC,” Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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