Americas Market Update 23 Sep

Bunker fuel prices have risen across the Americas, and bunker operations have been suspended again in Zona Comun.

IMAGE: Cargo vessel and tugboats at the Zona Comun anchorage in Argentina. Antares Ship Agents

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

• VLSFO prices up in Los Angeles ($25/mt), New York ($14/mt), Balboa ($11/mt), Houston ($10/mt) and Zona Comun ($8/mt)
• LSMGO prices up in Zona Comun ($92/mt), Los Angeles ($54/mt), Balboa ($27/mt), Houston ($22/mt) and New York ($8/mt)
• HSFO prices up in Los Angeles ($26/mt), Houston ($18/mt), New York and Balboa ($10/mt)

Zona Comun's LSMGO price has recorded the biggest gain for the grade across major ports in the Americas, reaching its highest level since 31 March.

Bunker operations have been suspended yet again at the anchorage, and prolonged delays are expected between 23-25 September due to winds above 20 knots, a trader said.

In Houston, lower-priced VLSFO and LSMGO quotations have put downward pressure on both grades, which have posted smaller gains than most other major ports in the Americas.

Two suppliers in New Orleans cannot deliver VLSFO and LSMGO within four days due to tight availability, traders said. Two other suppliers could offer the grades.

Brent

The front-month ICE Brent contract has gained $1.83/bbl on the day, trading at $100.65/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude has felt some upward pressure, as more commercial vessels came under air assaults this week.

An LPG tanker, attempting an outbound transit of the Strait of Hormuz, was hit by debris from unknown projectiles on Monday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

A separate vessel, conducting an inbound transit into the strait, was struck by an unknown projectile, the UKMTO reported.

As of yesterday, only 12 vessels attempted to transit the Strait of Hormuz, market intelligence provider Windward reported. Of this, six vessels moved in dark mode, the data also showed.

Downward pressure:

Brent crude's price has felt downward pressure amid growing market expectations of a diplomatic breakthrough in US-Iran negotiations and increased crude oil exports from Saudi Arabia.

US President Donald Trump told reporters that US officials had a "very good" three-hour meeting with Iranian representatives, at the ongoing United Nations General Assembly summit in New York earlier today.

"The first signs of diplomatic traction between the US and Iran can take enough heat out of energy prices," SPI Asset Management managing partner Stephen Innes noted.

Additionally, Saudi Arabia has restarted operations at its 1,200 km East-West pipeline and could soon resume exports from the Red Sea terminal of Yanbu, Reuters reported citing sources.

These developments have "helped ease concerns over Middle East supply disruptions," two analysts from ING Bank noted.

By Erik Hoffmann and Aparupa Mazumder

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