Americas Market Update 21 Aug

Fuel prices have moved in mixed directions, and bunker demand has been steady in Houston this week.

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

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

• VLSFO prices up in Zona Comun ($84/mt), New York ($48/mt) and Balboa ($3/mt), and down in Los Angeles ($11/mt) and Houston ($5/mt)
• LSMGO prices up in New York ($12/mt), and down in Balboa ($29/mt), Zona Comun ($28/mt), Houston ($12/mt) and Los Angeles ($6/mt)
• HSFO prices up in New York ($4/mt) and Los Angeles ($1/mt), and down in Balboa ($26/mt) and Houston ($5/mt)

Zona Comun's VLSFO price has made the biggest daily gain among fuel grades in key Americas locations. A higher-priced 500-1,500 mt VLSFO stem was fixed for delivery at $800/mt.

Bunker demand has dipped in Argentina in the past week, according to a local bunker trader.

At Zona Comun, VLSFO and LSMGO are available via barges, with lead times of 6-7 days. Five barges are currently in operation, according to a source.

Houston's HSFO and VLSFO prices have both declined by $5/mt, keeping the Hi5 spread steady at $204/mt.

Bunker fuel demand in Houston has been steady since last week. Prompt HSFO availability has been tight at the port, with recommended lead times of around 7-8 days.

At least two Houston suppliers have confirmed that they are currently offering only VLSFO and LSMGO. Lead times for both grades are between 5-6 days.

Brent

The front-month ICE Brent contract has lost by $0.01/bbl on the day, trading at $93.79/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price is poised to end the week higher than it began, amid growing hostilities between the US and Iran.

Washington has vowed to drag out the war, with President Donald Trump announcing sweeping economic sanctions on Iran and its allies.

Countries providing any type of financial support to Iran will “face TREMENDOUS Economic Consequences”, Trump said in a post on social media platform Truth Social.

Meanwhile, commercial vessels transiting the region have continued to come under attack.

A tanker sailing west in the Gulf of Aden, about 36 nautical miles east of Al Mukalla, Yemen, was hijacked yesterday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

“The tanker has been boarded by six armed persons who are now in control of the vessel and redirecting to Somalia,” the UKMTO said.

Downward pressure:

Brent's price rally has been capped after the US Energy Information Administration (EIA) reported a surprise rise in US crude stocks yesterday.

Commercial US crude oil inventories increased by 4.4 million bbls to 429 million bbls in the week ending 14 August, according to data from the EIA.

“This [EIA’s report] contrasted sharply with API's reported 328k barrel [328,000 bbls] draw and market expectations for a 74k barrel decline,” two analysts from ING Bank noted.

A build in US crude stocks typically indicates lower demand for oil and can put downward pressure on Brent.

By Gautamee Hazarika and Aparupa Mazumder

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