Americas Market Update 22 May

Fuel prices have mostly declined, and strong wind gusts could disrupt bunker deliveries in New York.

IMAGE: The Statue of Liberty seen from New York Harbor. Getty Images.

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

• VLSFO prices up in Balboa ($8/mt), Los Angeles ($6/mt) and Houston ($1/mt), and down in Zona Comun ($18/mt) and New York ($1/mt)
• LSMGO prices down in Zona Comun ($40/mt), Los Angeles ($19/mt), Houston ($17/mt), New York ($7/mt) and Balboa ($5/mt)
• HSFO prices unchanged in Balboa, and down in Los Angeles ($36/mt), New York ($10/mt) and Houston ($3/mt)

Most bunker benchmarks have recorded losses over the past session, tracking Brent's fall.

However, a higher-priced 500-1500 mt stem, fixed at Houston at $889/mt, has pushed the benchmark up. Houston is currently at a premium of $25/mt to New York for the grade.

The port of New York has recorded price declines across all three conventional fuel grades in the past day.

Bunker demand in New York is steady this week, although fuel prices are seeing some upward pressure from fluctuating fuel availability across the US East Coast.

LSMGO supply is expected to tighten further, with current lead times at 3–4 days. Prompt availability for HSFO and VLSFO remains constrained, with recommended lead times extending to 7–10 days.

The port is experiencing high wind gusts, which may result in possible disruptions and delays in bunker deliveries over the weekend, a source said.

Brent

The front-month ICE Brent contract has lost $3.98/bbl on the day, to trade at $103.45/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price is poised to end the week above $100/bbl, following reports that Iran’s new Supreme Leader remains unwilling to abandon the country’s uranium enrichment program, a major sticking point in efforts to secure a peace deal.

Mojtaba Khamenei, Iran’s new hardline Supreme Leader, has issued an order for uranium-powered weapons to remain within Iran, Reuters reported.

The news comes days after US President Donald Trump said Tehran will not be allowed to continue uranium enrichment under the peace deal.

The conflict in interest is expected to complicate the fragile peace deal between the US and Iran – further adding upward pressure on oil prices, market analysts said.

“The issues at stake remain the location of Iran’s uranium stockpile and control over the Strait of Hormuz,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will be focused on any suggestions of progress in US-Iran negotiations.

Washington is in the “final stages” of the ongoing negotiations with Tehran, Reuters reported citing Trump.

“Speculation is mounting about a peace deal between the US and Iran. Both sides have signalled progress in recent talks,” Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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