Americas Market Update 3 Sep

Fuel prices have mostly gained, and fuel availability has improved at the port of Los Angeles.

IMAGE: Aerial view of the ports of Long Beach and Los Angeles. Getty Images

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

• VLSFO prices up in Los Angeles and Zona Comun ($17/mt), Balboa ($9/mt) and Houston ($8/mt), and down in New York ($4/mt)
• LSMGO prices up in Los Angeles ($30/mt), Zona Comun ($25/mt), Balboa ($11/mt) and Houston ($9/mt), and down in New York ($2/mt)
• HSFO prices up in Houston ($16/mt), Los Angeles ($14/mt) and New York ($3/mt), and down in Balboa ($9/mt)

The port of Los Angeles has recorded price gains across all three conventional fuel grades in the past day.

On the US West Coast, fuel availability across all three conventional grades has improved over the past week, a trader said. At the ports of Los Angeles and Long Beach, some suppliers can now deliver VLSFO and LSMGO in a week's time, compared to last week's 10 days, while HSFO lead times remain unchanged at 7 days.

Zona Comun's VLSFO price has increased after a higher-priced, 500-1,500 mt stem, fixed at $802/mt, put upward pressure on the benchmark.

Bunkering operations are ongoing at the anchorage. Supplies of VLSFO and LSMGO are normal, with delivery lead times currently running at 5–7 days, a source said.

Strong winds are expected to persist through the week and could interrupt bunkering if wind speeds exceed 20 knots.

Brent

The front-month ICE Brent contract has gained by $1.93/bbl on the day, trading at $96.22/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has moved past the $95/bbl mark after renewed hostilities forced commercial vessels to continue avoiding the Strait of Hormuz.

Saudi Arabia’s Ministry of Foreign Affairs has accused Tehran of attacking the oil tanker Sidr, killing two sailors. The vessel is owned by Saudi Arabia’s national shipping company Bahri.

“Developments in recent days brought risks to regional oil supplies back into focus,” two analysts from ING Bank noted.

As of yesterday, nine vessels attempted to transit the strait, according to market intelligence provider Windward. Six vessels were operating with disabled AIS tracking transmitters.

“We’ve seen oil flow through the Strait of Hormuz despite the stalemate between the US and Iran, but rising tensions clearly put crossings at risk,” ING Bank’s analysts said.

Downward pressure:

While there are no major downward pressures on Brent’s price today, the market found some relief following positive remarks by US secretary of energy Chris Wright earlier this week.

‌Wright claimed ​that 17 ​million bbls of ⁠crude oil transited ​the Strait ​of Hormuz on Monday, marking the biggest uptick in flows ​via the narrow waterway in recent months, Reuters reported.

By Gautamee Hazarika and Aparupa Mazumder

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