Americas Market Update 24 Mar

Prices have largely trended upward, and weather-related disruptions to bunker operations off Trinidad are expected until Saturday.

IMAGE: Aerial view of an industrial harbour in New York. Getty Images.

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

• VLSFO prices up in Balboa ($80/mt), Houston ($47/mt) and New York ($11/mt)
• LSMGO prices up in Houston ($111/mt), New York ($18/mt) and Balboa ($13/mt)
• HSFO prices down in Houston ($60/mt)

Houston’s HSFO price has dipped over the past day, defying both Brent’s upward movement and the broader market trend.

The port's VLSFO price increased about the same amount as it lost yesterday. This has caused the port’s Hi5 spread to rebound from yesterday's negative to currently stand at $100/mt.

The price of LSMGO at the Gulf Coast port gained the most amongst the key Americas ports. As a result, it is now trading at a premium of $2/mt to New York and at a discount of $156/mt to Balboa.

Across the Americas, lead times and fuel prices remain highly unpredictable, with traders expecting increased volatility in bunker prices in the coming days, a source said.

Offshore Trinidad, bunker deliveries are expected to face delays until 28 March due to strong wind gusts and rough sea conditions. Whether deliveries can be carried out is being determined by supply vessels at the time of delivery.

Brent

The front-month ICE Brent contract has gained $2.76/bbl on the day, to trade at $103.07/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has traded north of $100/bbl in the fourth week of the Middle East conflict, supported by the ongoing strikes on energy infrastructure.

OPEC’s de-facto leader Saudi Arabia’s Ministry of Defense posted on social media platform X that it intercepted a series of drone attacks targeted toward its Eastern Province – where the Kingdom’s major oil fields and refineries are located.

Meanwhile, Iran has rejected the idea of engaging in direct negotiations with Washington or reopening the Strait of Hormuz for commercial vessels.

Brent’s price has climbed “amid reports that Saudi Arabia and the UAE have taken steps toward joining the conflict, raising the risk of escalation,” two analysts from ING Bank said.

Downward pressure:

Brent crude’s price has lost over $10/bbl after US President Donald Trump claimed that Washington would delay strikes on Iran’s power plants and energy infrastructure anytime soon.

Oil market participants have interpreted Trump’s comments as a sign of easing in the Middle East crisis.

“Oil prices saw one of their sharpest intraday swings on record… after President Donald Trump signalled a potential de‑escalation with Iran,” ING Bank’s analysts said.

Additionally, Japan will start releasing oil from its strategic reserve by the end of March, Reuters reported citing the country’s Prime Minister Sanae Takaichi.

Japan ​will contribute about 80 million bbls, coordinated ​by the International Energy Agency (IEA).

“We began releasing ​privately held ⁠reserves on March 16, and will begin releasing national reserves from the 26th,” Reuters cited Takaichi as saying.

By Gautamee Hazarika and Aparupa Mazumder

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