Americas Market Update 26 Oct

Fuel prices have moved in mixed directions, and anchorage deliveries in Freeport, Bahamas, have been suspended due to high winds.

IMAGE: Morgan's Point, the shipyard at the Port of Houston, located on the shores of Galveston Bay. Getty Images

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

• VLSFO prices up in Houston ($5/mt) and Los Angeles ($3/mt), and down in Zona Comun ($26/mt), New York and Balboa ($1/mt)
• LSMGO prices up in Zona Comun ($59/mt) and Balboa ($1/mt), and down in New York ($61/mt), Houston ($21/mt) and Los Angeles ($6/mt)
• HSFO prices down in Balboa ($30/mt), New York ($21/mt), Los Angeles ($7/mt) and Houston ($6/mt)

New York’s LSMGO price has recorded the steepest decline over the past session. A lower-priced, 150-500 mt stem, fixed at $1,564/mt, may have weighed on the benchmark.

New York’s LSMGO still holds a $120/mt premium over Houston’s.

In Houston, VLSFO has recorded the largest price increase among the grade, while the port's HSFO has dipped. These movements have widened the port’s Hi5 spread to $223/mt today, up from $212/mt on Friday.

Bunker demand is strong in Houston, and all three conventional grades are tight for prompt supply. Recommended lead times are around 5-8 days, a source tells ENGINE.

Strong wind gusts have halted anchorage deliveries in Freeport, Bahamas. Bunker operations at the port could face disruptions until Wednesday, a source said.

Brent

The front-month ICE Brent contract has gained $0.47/bbl on the day from Friday, trading at $115.47/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has extended gains as mounting concerns over supply disruptions in the Middle East have kept the market on edge.

Market participants are growing increasingly concerned about the risk of a fresh escalation in tensions between the US and Iran as Washington prepares for the mid-term elections on 3 November.

“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,” two analysts from ING Bank noted.

Saudi Arabia’s state-owned oil company Aramco has urged its staff to evacuate its headquarters in Dhahran, as the conflict between Riyadh and Yemen-based Houthi militant group intensified last week.

Downward pressure:

Brent’s gains have been capped by some hopes of easing hostilities in the Middle East.

Qatari mediators travelled to Tehran yesterday in an effort to de-escalate tensions between the US and Iran, Reuters reported, citing an official briefed on the situation.

Senior officials from Saudi Arabia, Turkey and Pakistan are also set to meet leaders in Tehran today, according to Reuters.

By Gautamee Hazarika and Aparupa Mazumder

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