Americas Market Update 4 Aug

Fuel prices have moved in mixed directions, while high wind gusts could cause delays in Zona Comun.

IMAGE: Bulk carrier in the Houston Ship Channel. Port Houston

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

• VLSFO prices up in Houston ($21/mt), Zona Comun ($18/mt) and Balboa ($14/mt), and down in New York ($31/mt) and Los Angeles ($23/mt)
• LSMGO prices up in Houston ($26/mt), and down in New York ($43/mt), Los Angeles ($37/mt) and Balboa ($6/mt)
• HSFO prices up in Houston ($26/mt), and down in Balboa ($37/mt), Los Angeles ($35/mt) and New York ($23/mt)

Houston's LSMGO price has increased after a higher-priced, 150-500 mt stem, booked at $1,250/mt, put upward pressure on the benchmark. The port has recorded price gains across all three fuel grades despite Brent's downward movement.

Lead times are 5-7 days for HSFO and VLSFO. LSMGO availability is better at the port and can be delivered within 3-4 days, a trader said.

In Balboa, while the VLSFO price has increased, the port's HSFO price has significantly declined, widening the port's Hi5 spread to $134/mt today from $83/mt yesterday.

In Zona Comun, bunkering operations are expected to face disruptions from high wind gusts between 6-8 August, a source said.

VLSFO and LSMGO availability is normal, with suppliers typically making deliveries within 6-7 days.

Brent

The front-month ICE Brent contract has lost $1.5/bbl on the day, to trade at $81.49/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Oil has reversed yesterday’s losses, as market participants grow sceptical of US President Donald Trump's peace rhetoric, and the likelihood of reaching an agreement anytime soon.

“We’ve been in this situation multiple times before, only to see things unravel,” two analysts from ING Bank noted.

The US Central Command (CENTCOM) is “looking for new creative and unconventional ways to pressure and punish Iran” as it continues to enforce the US blockade against Iran, CNN reported, citing an unnamed CENTCOM officer.

As of yesterday, CENTCOM has redirected 44 commercial vessels, disabled two, and boarded two, to prevent them from entering or departing Iranian ports, it said on social media platform X.

“With Iran denying that any talks are underway and Trump issuing warnings if no deal materialises, the backdrop clearly leaves ample room for a renewed escalation,” ING Bank’s analysts said.

Downward pressure:

While there are no major downward pressures acting on Brent today, market analysts will continue to keep a close eye on any signs of de-escalation in the Middle East and evolving developments in US-Iran diplomacy.

Brent’s price gains were capped “after the US and Iran signalled that discussions about restoring shipping through the Strait of Hormuz had resumed,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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