Americas Market Update 21 Jan

Bunker fuel prices have moved in mixed directions, and rough weather conditions are expected to delay GOLA bunkering until Sunday.

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

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

• VLSFO prices up in New York ($2/mt), Los Angeles ($1/mt), unchanged in Balboa, and down in Houston ($24/mt) and Zona Comun ($2/mt)
• LSMGO prices up in New York ($20/mt), Houston ($11/mt), Zona Comun ($8/mt), Balboa ($7/mt) and Los Angeles ($4/mt)
• HSFO prices up in Balboa ($4/mt), unchanged in Houston and Los Angeles, and down in New York ($1/mt)

Houston’s VLSFO price has fallen by $24/mt over the past day, after a lower-priced 500–1,500 mt VLSFO stem was booked for delivery in the port at $425/mt, putting downward pressure on the benchmark.

The Houston area has been experiencing dense fog conditions, leading to intermittent suspensions of vessel traffic through the Houston Ship Channel.

Suppliers are recommending extended lead times of 7–10 days for all three conventional fuel grades.

In the Galveston Offshore Lightering Area (GOLA), bunker operations are currently underway, but deliveries are expected to be delayed between 22–25 January due to dense fog and rough sea conditions.

In New York, cold weather conditions and high wind gusts are disrupting supply and delivery schedules this week, a source said.

A small craft advisory issued on Monday has been extended through this afternoon. This means that small vessels like tug boats and barges will have limited movements during periods of high wind gusts.

Recommended lead times for both HSFO and VLSFO are 4–7 days in New York. LSMGO can be delivered with lead times typically at 3–4 days.

Brent

The front-month ICE Brent contract has gained $0.60/bbl on the day, to trade at $65.02/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Renewed supply disruption issues have supported Brent’s price gains today.

OPEC member Kazakhstan’s largest oil producer has halted production at the Tengiz and Korolevskoye fields, as precautionary measures, after two fires broke out at power generators, Reuters reported.

The Tengiz oilfield is expected to remain shut for at least 10 days, the report added. The closure is expected to cut crude oil exports via the Caspian Pipeline Consortium (CTC).  

“This [production halt] comes after Kazakhstan reduced oil production after drone strikes affected the Caspian Pipeline Consortium’s shipping terminal in Russia, which is the outlet for about 80% of Kazak exports,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The OPEC producer’s crude production in the first 12 days of January was down by almost 35% from average daily output in December 2025, according to Reuters.

Downward pressure:

Brent crude has come under some downward pressure as renewed trade tensions between the US and Europe weighed on market sentiment.

US President Donald Trump has threatened to impose 10% tariffs on several European countries from 1 February, after they opposed US' control of Greenland.

Washington would raise the levy to 25% from 1 June, unless an agreement is reached on what he described as the “complete and total purchase of Greenland” by the US.

Analysts caution that an escalation in trade barriers could undermine global economic growth, weakening oil demand and adding further downside pressure to prices.

By Gautamee Hazarika and Aparupa Mazumder

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