Americas Market Update 18 Sep

Fuel prices have moved higher, and bunker availability has improved in Zona Comun.

IMAGE: Cranes loading a container ship at a terminal in New York. Getty Images

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

• VLSFO prices up in Zona Comun ($46/mt), Houston ($27/mt), New York ($22/mt), Balboa ($17/mt) and Los Angeles ($12/mt)
• LSMGO prices up in New York ($51/mt), Zona Comun ($48/mt), Balboa ($27/mt), Los Angeles ($12/mt) and Houston ($4/mt)
• HSFO prices up in Los Angeles ($25/mt), Houston ($17/mt), Balboa ($16/mt) and New York ($13/mt)

Zona Comun's VLSFO price has recorded the highest increase for the grade, across major ports in the Americas over the past day. A higher-priced 150-500 mt VLSFO stem has been fixed at the anchorage at $930/mt.

VLSFO and LSMGO availability has improved at Zona Comun, where suppliers can now deliver within 3-6 days, down from 5-7 days previously, a source said.

New York's LSMGO price has increased the most across all three fuel grades, moving up by $51/mt. The port's LSMGO price is currently at a premium of $159/mt to Houston and an $87/mt discount to Los Angeles.

All three conventional grades require lead times of 5-8 days in New York. HSFO availability is expected to tighten over the week, a source said.

Brent

The front-month ICE Brent contract has gained $1.94/bbl on the day, trading at $103.89/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude has felt some upward pressure amid escalating Middle East hostilities, with Saudi Arabia now directly involved in the conflict.

Vessel traffic through the Strait of Hormuz continues to remain well below the pre-war average of 140 daily transits, amid repeated attacks and the US Central Command’s (CENTCOM) ongoing blockade of the region.

As of Wednesday, 15 vessels attempted to transit the Strait of Hormuz – eight inbound and seven outbound – market intelligence provider Windward reported.

Out of this, nine vessels transited the region with their Automatic Identification System (AIS) turned off, Windward said.

Downward pressure:

Brent crude is poised to end the week lower after reports of ship-to-ship crude transfers eased some panic over Saudi export crisis.

Saudi Arabia is offering crude oil to Asian buyers via ship-to-ship transfer off Oman's Sohar port after drone attacks ​damaged its key East-West oil pipeline to the Red Sea, Reuters reported citing sources.

Moreover, Washington appears more optimistic than much of the market. Crude oil could be flowing out of the vital oil pipeline within days, Reuters reported, citing US energy secretary Chris Wright.

Riyadh is also trying to move oil through the Strait of Hormuz with US military assistance, Wright said on the sidelines of a G20 energy meeting.

By Gautamee Hazarika and Aparupa Mazumder

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