Americas Market Update 27 Mar

Fuel prices have mostly moved up, and New York could face disruptions due to rough weather until Monday.

IMAGE: Cranes in the Port of New York and a silhouette of the Statue of Liberty. Getty Images

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

• VLSFO prices up in Los Angeles ($33/mt), Balboa ($26/mt) and Houston ($13/mt)
• LSMGO prices up in Los Angeles ($44/mt), Balboa ($41/mt) and Houston ($17/mt)
• HSFO prices up in Balboa ($24/mt), and down in Houston ($27/mt)

Houston's HSFO price has defied both the general market direction and Brent's upward movement by decreasing in the past day.

The port's VLSFO price has risen, meanwhile, to widen the port's Hi5 spread to by $40/mt to $131/mt.

Bunker demand is normal in Houston, with suppliers recommending lead times of at least one week for all three conventional fuel grades.

The US fog season is nearing its end. The fog has cleared in ports along the Gulf Coast and vessel traffic and deliveries are running smoother compared to previous weeks, a source said

On the East Coast, suppliers in the port of New York are expecting a period of possible disruptions between 27–30 March.

"Suppliers may require standby tug during operations due to high wind gusts. It will be on a case-by-case basis if needed," a trader tells ENGINE.

Bunker demand has increased in New York, with lead times of 4–7 days for VLSFO and HSFO. LSMGO is tight for prompt supply, but has been fix with lead times of 4–5 days over the past week.

Brent

The front-month ICE Brent contract has gained $3.43/bbl on the day, to trade at $110.87/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude has felt upward pressure as concerns over oil supply disruptions in the Middle East continues to drive prices higher.

The US is expected to send more military personnels from its 82nd Airborne Division to the Middle East, Reuters reported citing two sources. The move would add to the huge military buildup in the region.

A further escalation could significantly intensify the conflict - now entering its fourth week - and deepen the disruption already felt across global markets, analysts said.

“With both sides continuing attacks and the US reportedly reinforcing its military presence in the region, concerns over supply disruptions remain elevated,” two analysts from ING Bank noted.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will keep an eye on renewed possibilities of negotiations between the US and Iran.

The US is extending its pause on strikes targeting Iranian power plants by 10 more days, according to President Donald Trump.

“Oil prices steadied after US President Donald Trump again pushed back the deadline for striking Iran’s energy,” ING Bank analysts said.

Washington will not strike Iran’s energy facilities until 6 April at 20.00 ET (00.00 GMT), he said on the social media platform Truth Social.

“Extending the ceasefire takes some near-term heat out of the market,” the two analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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