Americas Market Update 23 Oct

Fuel prices have moved in mixed directions, and bunker demand in Panama has decreased this week.

IMAGE: Cargo vessel and tugboats near Zona Comun. Antares Ship Agents

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

• VLSFO prices up in Balboa ($22/mt), Zona Comun ($21/mt), Houston ($17/mt), Los Angeles ($14/mt) and New York ($12/mt)
• LSMGO prices up in New York ($53/mt), Balboa ($41/mt), Houston ($31/mt) and Los Angeles ($15/mt), and down in Zona Comun ($7/mt)
• HSFO prices up in Houston ($9/mt), New York and Balboa ($3/mt), and down in Los Angeles ($1/mt)

Zona Comun’s LSMGO price has declined, while the grade’s price at other major ports in the Americas have increased in line with Brent’s upward movement. The anchorage’s LSMGO price is at a $125/mt premium over Santos now.

VLSFO and LSMGO availability is tight at the anchorage, with lead times between 8-10 days, a source said.

Balboa’s VLSFO price has risen the most of the five bunker hubs over the past day, while its HSFO price has increased only marginally.

This has widened the port’s Hi5 spread to $92/mt today from $73/mt on Thursday.

Availability has tightened across all three grades at the ports of Balboa and Cristobal in Panama, and fuel demand is reported to be muted. Suppliers need more than a week to deliver VLSFO and LSMGO stems. HSFO is the tightest, with suppliers recommending lead times of 8-10 days.

Brent

The front-month ICE Brent contract has gained $2.93/bbl on the day, trading at $115.00/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent futures have extended their gains from Thursday as concerns over supply disruptions in the Middle East continue to mount.

Saudi Arabia’s state-owned oil company Aramco has told its staff to evacuate the company’s headquarters in Dhahran, as fighting between Saudi forces and Yemen-based Houthis has intensified, Reuters reported.

“Reports suggest President Trump is considering fresh strikes on Iran, while the US is reinforcing its military presence in the region with the deployment of a second aircraft carrier,” analysts from ING Bank said.

Meanwhile, Iran has threatened to strike oil and AI facilities across seven Gulf countries if the US and Israel launch fresh attacks on Iran, The Guardian reported, citing Iran’s National Security Council secretary Mohsen Rezaei.

Downward pressure:

Brent’s price has come under some downward pressure following reports that Russia agreed on Wednesday to participate in US-mediated peace talks with Ukraine, starting next month.

Additionally, an oil tanker carrying 40,000 mt of Russian diesel is heading towards New York, Reuters reported. The move follows US President Donald Trump's announcement of the diesel purchase deal with Russian President Vladimir Putin on 9 October.

By Gautamee Hazarika and Shilpa Sharma

Please get in touch with comments or additional info to news@engine.online