Americas Market Update 19 Jan

Bunker fuel prices in the Americas have moved in mixed directions, and prolonged delays at Zona Comun are expected to impact barge reloading operations.

IMAGE: A group of tankers in port along the Houston Ship Channel, Texas. Getty Images

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

• VLSFO prices up in Los Angeles ($21/mt) and New York ($1/mt), and down in Zona Comun ($11/mt), Balboa ($3/mt) and Houston ($1/mt)
• LSMGO prices up in Houston ($4/mt), Los Angeles and Balboa ($1/mt), and down in New York ($21/mt) and Zona Comun ($11/mt)
• HSFO prices up in Los Angeles ($23/mt) and Houston ($2/mt), and down in Balboa ($12/mt) and New York ($4/mt)

Los Angeles’ HSFO price, which has gained the most across all key ports as well as the three conventional fuel grades, is currently also at a premium of $27/mt to Seattle.

Availability at the twin ports of Los Angeles and Long Beach remain steady, with suppliers recommending lead times of 7–8 days this week.

Zona Común’s VLSFO and LSMGO prices have both decreased by $11/mt over the past session. The anchorage is facing rough weather conditions, and possible disruptions are expected until 20 January, due to high wind gusts.

"Currently, deliveries are being carried out on a first-come, first-served basis. Prolonged delays are expected, which can impact barge re-loadings as well," a trader told ENGINE.

Lead times at the anchorage for VLSFO and LSMGO are around 6–7 days this week.

Brent

The front-month ICE Brent contract has lost $0.67/bbl on the day from Friday, to trade at $63.73/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude has gained some support amid elevated geopolitical risks in the Middle East.

The US Treasury announced sanctions on Iran’s Secretary of the Supreme Council for National Security and 18 individuals and entities, including a UAE-based shipping firm.

Market participants believe that a potential US intervention in the region could disrupt oil flows from the OPEC member nation.

“The US continues to boost its military presence in the Middle East. At least one aircraft carrier is moving to the region,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Downward pressure:

Brent crude’s price has moved lower following the re-emergence of tariff friction between the US and major European nations.

In a social media post, US President Donald Trump threatened to impose a 10% tariff on eight European countries for opposing US control of Greenland.

The US will charge a 10% import tax on all goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland from 1 February.

The tariff would increase to 25% on 1 June if no deal is reached by then on the “complete and total purchase of Greenland” by the US, Trump said.

Market analysts warn that high tariffs could dampen global economic growth, eroding oil demand and putting downward pressure on prices.

The headwinds facing Brent are “only getting stronger with President Trump’s latest threat of tariffs on several European countries,” two analysts from ING Bank remarked.

By Gautamee Hazarika and Aparupa Mazumder

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