Americas Market Update 19 Dec

Fuel prices have mostly moved higher, and the Port of Houston has reopened to all traffic following a closure on Wednesday due to dense fog.

IMAGE: A tugboat in the Houston area. Getty Images

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

• VLSFO prices up in New York ($5/mt), Houston, Los Angeles ($4/mt) and Zona Comun ($2/mt), and down in Balboa ($5/mt)
• LSMGO prices up in Zona Comun ($3/mt), New York ($2/mt), Houston, Los Angeles and Balboa ($1/mt)
• HSFO prices up in Balboa ($11/mt), Los Angeles ($5/mt) and Houston ($3/mt), and unchanged in New York

Balboa’s VLSFO price has defied Brent’s uptick and the broader market trend, having fallen by $5/mt over the past day.

In Panama, bunker demand has improved over the fourth quarter of the year, which has been reflected in higher sales volumes, a source said.

At the ports of Balboa and Cristobal, VLSFO and LSMGO require 5-7 days of lead time this week. LSMGO is available with most suppliers within shorter lead times of around 4 days.

In the US Gulf, the ongoing fog season has continued to disrupt port operations.

The Port of Houston has reopened to all vessel traffic today after being closed on Wednesday due to dense fog and reduced visibility.

In Houston, availability of all three conventional bunker fuels is expected to tighten in the coming weeks, as suppliers have begun maintaining lower-than-usual inventories toward year-end.

At the nearby Galveston Offshore Lightering Area (GOLA), bunker deliveries are expected to be suspended today due to high wind gusts and wave heights of around 5 feet, a bunker trader said.

Brent

The front-month ICE Brent contract has gained $0.36/bbl on the day, to trade at $60.13/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude’s price has found some support on the back of fresh economic data from the world’s largest crude oil consumers – the US.

The US Consumer Price Index (CPI), a key gauge of inflation, increased by 0.2% in both October and November, after rising by 0.3% in September.

The data supports the likelihood of further US interest rate cuts in 2026, according to market analysts.

Lower interest rates in the US can support demand growth and make dollar-denominated commodities like oil less expensive for holders of other currencies.

Downward pressure:

Growing optimism over a potential Russia-Ukraine peace agreement has offset supply disruption concerns stemming from the blockade of Venezuelan oil tankers.

US President Donald Trump said talks aimed at ending the conflict in Ukraine are “getting close to something,” Reuters reported.  

The remarks come ahead of a meeting between US and Russian officials over the weekend.

Market analysts believe that a deal could potentially ease energy-related sanctions on Kremlin, bringing Russian oil back to a global market already facing oversupply concerns.

“Current US sanctions on Russian oil companies are having an impact on oil exports, with volumes falling below 400kb/d [400,000 b/d] to India and 600kb/d [600,000 b/d] to China,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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