Americas Market Update 5 Apr

Bunker fuel prices have moved in mixed directions, and deliveries are suspended in GOLA due to bad weather conditions.

IMAGE: Cranes loading a container ship at a terminal in New York. Getty Images.

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

• VLSFO prices up in Zona Comun ($84/mt), New York ($23/mt), Los Angeles ($19/mt) and Houston ($9/mt), and down in Balboa ($6/mt)
• LSMGO prices up in New York ($15/mt), and down in Zona Comun ($22/mt), Los Angeles ($16/mt), Houston ($12/mt) and Balboa ($7/mt)
• HSFO prices up in New York ($21/mt), Houston ($15/mt) and Balboa ($9/mt), and down in Los Angeles ($23/mt)

Houston's VLSFO price has gained after a higher-priced 500–1500 mt VLSFO stem, fixed at $909/mt, put upward pressure on the benchmark.

The port is currently at a premium of $50/mt to New York for the grade and at a discount of $128/mt to Los Angeles.

In the anchorage of the Galveston Offshore Lightering Area (GOLA), deliveries have been suspended due to high wind gusts and rough sea conditions.

In the East Coast port of New York, weather conditions have been a bit rough, with port authorities extending the small craft advisory until Wednesday morning.

Lead times for VLSFO and HSFO in New York are at 5–7 days, while LSMGO is more readily available, with shorter lead times of around 2–3 days.

Brent

The front-month ICE Brent contract has gained $0.63/bbl on the day from, to trade at $112.10/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has moved north of $110/bbl, following a fresh flareup in the Middle East conflict.

Iranian missiles and drones struck the UAE, including Fujairah port – a major Asian bunker hub.

“This port is important for UAE oil exports,” two analysts from ING Bank said. “It is situated outside the Strait of Hormuz, which allowed oil exports to continue… despite the war and blockade of the Strait,” they added.

Separately, two Iranian drones struck MV Barakah – an oil tanker operated by the UAE’s state-owned ADNOC, off Oman’s coast.

“A re-escalation of tensions in the Persian Gulf pushed oil and gas prices higher as the market once again reprices the duration of supply disruptions from the region,” two analysts from ING Bank noted.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US rose by one to 408 units last week.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

By Gautamee Hazarika and Aparupa Mazumder

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