Americas Market Update 26 Feb

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

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

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Zona Comun ($5/mt), Balboa ($1/mt), unchanged in Houston and Los Angeles, and down in New York ($1/mt)
  
• LSMGO prices unchanged in Los Angeles, and down in Balboa ($18/mt), Zona Comun ($11/mt), New York ($4/mt) and Houston ($3/mt)
• HSFO prices unchanged in New York and Los Angeles, and down in Balboa ($15/mt) and Houston ($2/mt)

Balboa's HSFO price recorded a significant decline after a lower-priced 500-1500 mt stem, fixed at $442/mt, put downward pressure on the benchmark.

Meanwhile, the port's VLSFO price increase has widened its Hi5 spread to $114/mt today.

In Panama, bunker fuel demand has picked up this week, with traders reporting more enquiries. Prompt delivery is tight for all three conventional grades this week, with lead times ranging between 5–7 days.

New York's HSFO price remains unchanged and is currently at premiums of $24/mt to Houston and $64/mt to Los Angeles.

The East Coast port has repeatedly been affected by adverse weather conditions.

"As far as the East Coast is concerned, a severe blizzard has caused delays to vessel and barge movements. Conditions are expected to improve toward the end of the week, gradually," a bunker trader told ENGINE.

HSFO requires lead times of around 8–9 days in New York this week, while VLSFO requires around 5–6 days, a trader informed. LSMGO has tightened slightly but remains comparatively more available, with lead times of 2–3 days advised.

Brent

The front-month ICE Brent contract has declined by $0.23/bbl on the day, to trade at $70.83/bbl at 09.00 GMT.

Upward pressure:

Brent’s price has felt some upward push over supply disruption concerns as US envoys, Steve Witkoff and Jared Kushner, meet representatives from Iran for a third round of indirect talks later today in Geneva.

“It’s a big day for oil markets with all eyes on US-Iran nuclear talks,” two analysts from ING Bank said.

Both countries are expected to discuss Iran’s nuclear capabilities – something Washington has repeatedly opposed.

“The principle is very simple: Iran cannot have a nuclear weapon,” Reuters cited US Vice President JD Vance as saying.

Iran is the fourth-largest OPEC member, producing around 3.2 million b/d of crude oil – which faces disruption threats if a deal is not finalised, market analysts said.

“Longer-term action from the US, with more aggressive retaliation from Iran, would increase supply risks for the oil market. This would make any further price increases more sustainable,” ING Bank’s analysts added.

Downward pressure:

Brent’s price has come under downward pressure after the US Energy Information Administration (EIA) reported a massive increase in US crude stocks.

Commercial US crude oil inventories have increased by 16 million bbls to 436 million bbls for the week ending 20 February, according to data from the EIA.

“The increase was dominated by inventory builds on the [US] Gulf Coast,” ING Bank’s analysts said.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.

The EIA data comes one day after the American Petroleum Institute (API) reported a staggering 11.4 million-bbl rise in US crude stocks.

By Gautamee Hazarika and Aparupa Mazumder

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