Americas Market Update 23 June

Fuel prices have moved in mixed directions, and rough weather has forced a suspension of operations in Zona Comun.

IMAGES: Container ship crossing over the Miraflores locks at the Panama Canal. Getty Images.

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

• VLSFO prices up in Zona Comun ($18/mt) and New York ($1/mt), unchanged in Los Angeles, and down in Balboa ($20/mt) and Houston ($12/mt)
• LSMGO prices up in Zona Comun ($10/mt), New York ($2/mt) and Houston ($1/mt), and down in Los Angeles ($49/mt) and Balboa ($13/mt)
• HSFO prices up in Houston ($4/mt), and down in Los Angeles ($30/mt), Balboa ($20/mt) and New York ($1/mt)

Zona Comun has recorded the highest price increases for both VLSFO and LSMGO across the key ports in the Americas over the past day.

Operations at the anchorage are currently suspended due to high wind gusts in the region, which exceed 20 knots. A period of disruption is expected between 23-25 June, and another suspension is likely on 25 June, a trader tells ENGINE.

In Balboa, the port's HSFO price has declined after a lower-priced 500-1,500 mt HSFO stem was booked at $616/mt, which put downward pressure on the benchmark.

The port's VLSFO price fell after a lower-priced 500-1,500 mt VLSFO stem was booked at $667/mt, which put downward pressure on the benchmark.

Since the prices of both, VLSFO and HSFO, at Balboa have declined by $20/mt, the Hi5 spread at the port remains unchanged at $47/mt. Recommended lead times for all three conventional fuels at Balboa are between 3-5 days.

Brent:

The front-month ICE Brent contract has lost by $1.07/bbl on the day, to trade at $77.61/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

While there are no specific upward pressures acting on Brent’s price today, market analysts will keep an eye on developments in Lebanon.

The Israel Defense Forces (IDF) struck targets in southern Lebanon over the weekend, breaching a key provision of the US-Iran peace deal signed in France last week.

Any further regional hostilities risk reigniting market anxiety, as they raise the possibility of Iran once again closing the Strait of Hormuz.

Downward pressure:

Brent crude’s price came under downward pressure after the US Department of Treasury (DoT) waived some sanctions linked to Iranian oil sale.

The temporary 60-day general license will authorise the production, delivery and sale of Iranian crude and petrochemical products to global markets, the treasury department said.

Oil “weakened as the US announced a temporary sanctions waiver on Iranian oil exports,” two analysts from ING Bank said.

The license will allow Iranian-origin oil sale made by US dollar-denominated funds, according to the treasury department.

Meanwhile, the gradual increase in oil flows through the Strait of Hormuz and positive outcomes from yesterday’s US-Iran talks in Switzerland have put downward pressure on prices today.

“Iran had already started ramping up exports following the lifting of the US blockade. This sanctions waiver will open more markets for Iran to sell its oil, including the US,” ING Bank’s analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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