Americas Market Update 22 Apr

Fuel prices have largely moved upwards, and high wind gusts might cause delays at the anchorage in Freeport.

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 Balboa ($71/mt), Zona Comun ($42/mt), New York ($28/mt), and down in Houston ($7/mt)
• LSMGO prices up in New York ($91/mt), Zona Comun ($79/mt), Houston ($43/mt), and down in Balboa ($23/mt)
• HSFO prices up in New York, Houston ($25/mt), and Balboa ($7/mt)

Of the key bunkering hubs in the Americas, the price of VLSFO dipped only in the US Gulf's Port of Houston, due to potential downward pressure from a lower-priced 500–1500 mt VLSFO stem, fixed at $780/mt.

Balboa's LSMGO price benchmark has also dipped over the past day, after a lower-priced 50–150 mt LSMGO stem was booked at $1,344/mt, which may have put downward pressure on the benchmark.

Meanwhile, the port’s HSFO has jumped significantly lesser than its VLSFO benchmark, widening the Hi5 spread to $33/mt today.

Lead times at the Panamanian port stand at 3–5 days for VLSFO and LSMGO, and 4–6 days for HSFO.

In the Bahamas’ Freeport, delays at the anchorage are expected through tomorrow due to strong wind gusts in the region, a source said.

Brent

The front-month ICE Brent contract has gained $5.11/bbl on the day, to trade at $100.20/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has shed the previous day’s losses amid escalating tensions in the Strait of Hormuz.

At least three container vessels in the region were hit by gunfire ​yesterday, the United Kingdom Maritime Trade Operations (UKMTO) reported.

The attacks come amid continued US blockade of the Strait - a move Tehran has labelled an act of war.

“UKMTO has received a report of an incident 8 NM [nautical miles] west of Iran. A master of an outbound cargo ship reports having been fired upon and is now stopped in the water,” the UKMTO reported.

​Another containership sustained heavy damage to the bridge, after being hit by gunfire 15 NM northeast of Oman, the maritime intelligence agency reported.

The UKMTO ​said the Liberia-flagged vessel was approached by an Iranian ​gunboat and was subsequently fired upon.

“The longer these supply disruptions persist, the tighter the oil market becomes, leaving a longer path towards normalisation for markets once hostilities end,” two analysts from ING Bank said.

Prior to the outbreak of the conflict on 28 February, the waterway carried about 20% of global seaborne oil flows. “Energy flows will take time to recover,” ING Bank analysts added.

Downward pressure:

Brent’s price has felt some downward pressure amid some hopes of de-escalation in the Middle East conflict.

Yesterday, US President Donald Trump announced an indefinite extension of the ceasefire to allow further negotiations, as the Middle East conflict enters its second month.

A fresh round of talks between Washington and Tehran is planned for later today in Islamabad, according to media reports. Although, the latter’s willingness to participate in negotiations remains unclear.

“These talks are important, with the current ceasefire set to end on Wednesday,” ING Bank’s analysts said. “A lack of progress would likely push oil and gas prices higher,” they added.

By Gautamee Hazarika and Aparupa Mazumder

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