Americas Market Update 30 Sep

Fuel prices have mostly gained across the Americas, and weather conditions have improved in New York.

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

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

• VLSFO prices up in Los Angeles ($15/mt), New York ($11/mt), Zona Comun ($7/mt), Balboa ($4/mt) and Houston ($3/mt)
• LSMGO prices up in Los Angeles ($17/mt) and New York ($14/mt), unchanged in Houston, and down in Balboa ($6/mt)
• HSFO prices up in Los Angeles ($10/mt) and Houston ($8/mt), and down in in New York ($38/mt) and Balboa ($3/mt)

Zona Comun's VLSFO price has risen over the past day, after a higher-priced, 150-500 mt stem, fixed at $891/mt, pushed the benchmark up.

High wind gusts near the anchorage have delayed bunkering operations at the port. Availability there is very tight, with VLSFO and LSMGO available only on prior consultation, a source said.

New York's VLSFO price has gained while its HSFO price has fallen, widening the port's Hi5 spread to $228/mt today from $179/mt on Tuesday.

Weather has been rough at the port over the past few days but has since improved, a trader said.

Availability of all three conventional grades is normal, with LSMGO requiring lead times between 3-6 days. VLSFO and HSFO require 5-7 days this week.

Brent

The front-month ICE Brent contract has lost $0.16/bbl on the day, trading at $102.99/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has continued to trade well above the $100/bbl threshold, after US President Donald Trump dismissed claims of easing economic sanctions on Iran.

Media reports suggesting that Trump has offered to release frozen Iranian funds, in exchange for Tehran to reopen the Strait of Hormuz to commercial navigation, are false, Trump said on social media platform Truth Social.

The statement comes amid stalled mediation efforts between Washington and Tehran, following a complete absence of diplomatic breakthrough at the United Nations General Assembly summit in New York earlier this month.

Notably, Tehran has actively demanded that the White House releases its frozen assets in order to restore vessel movement through the Strait of Hormuz back to normalcy.

Oil prices remain more than 60% higher year-to-date, amid the ongoing escalation in the Middle East, that has now pulled Saudi Arabia into it, two analysts from ING Bank noted.

Downward pressure:

Brent crude’s price has felt some downward pressure after the American Petroleum Institute (API) reported a rise in US crude stocks.

US crude oil inventories increased by 1.02 million bbls in the week ending 25 September, the API reported.

Market analysts had expected an inventory draw of 578,000 b/d instead, ING Bank’s analysts added.

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

By Gautamee Hazarika and Aparupa Mazumder

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