Americas Market Update 6 Aug

Bunker prices have moved in mixed directions, and fuel availability is good across Panama's ports.

IMAGE: Maersk and CMA CGM container ships docked in Los Angeles. Port of Los Angeles

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

• VLSFO prices up in Los Angeles ($28/mt), Zona Comun ($20/mt), Balboa ($15/mt) and New York ($5/mt), and down in Houston ($29/mt)
• LSMGO prices up in Balboa ($66/mt) and New York ($14/mt), and down in Houston ($39/mt), Los Angeles ($34/mt) and Zona Comun ($31/mt)
• HSFO prices up in Balboa ($13/mt), New York ($2/mt) and Los Angeles ($1/mt), and down in Houston ($20/mt)

Los Angeles' VLSFO price has recorded the largest increase for the grade among key Americas ports.

At the US West Coast port, bunker demand is reported to be strong. Availability has improved over the past few weeks, with most suppliers able to deliver stems of all three conventional fuel grades within 6-7 days.

Balboa has recorded the biggest increase in both, HSFO and LSMGO prices.

Two higher-priced 150-500 mt LSMGO stems, booked at $1286/mt and $1304/mt, may have pushed the benchmark up.

The Panamanian port is facing mild congestion, and bunker demand is steady.

Availability is good at both Balboa and Cristobal. VLSFO and LSMGO can be delivered within lead times of 4-7 days, while HSFO requires at least five days, a source said.

Brent

The front-month ICE Brent contract has gained $0.67/bbl on the day, to trade at $80.80/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has felt some upward pressure as the broader Middle East conflict, extending to the Red Sea, escalated.

Yemen’s Iran-aligned Houthi militants have struck multiple cargo ships in the Red Sea this week, causing one vessel to capsize and sink.

The India-flagged oil tanker MSV Faize Noore Oliya drowned off the coast of Yemen in the Red Sea yesterday, after being hit by a projectile.

Threats in the Red Sea persist, despite ongoing diplomatic channels between Washington and Tehran, prompting several tankers carrying Saudi crude to take a U-turn ahead of the Bab al-Mandeb Strait.

Market optimism “was tempered by reports that Houthi militants had targeted a Saudi Arabian oil tanker,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent’s price has slipped below $80/bbl mark as the global oil market awaits a final decision from Iran and Oman, on a draft agreement to reopen the Strait of Hormuz to commercial vessels.

The agreement is in its “final stage,” according to an Iranian official speaking to the Associated Press.

If finalised, the agreement has a potential to reopen the critical waterway – easing some pressure on the world economy.

“Crude oil extended recent losses, as signs of a deal on the reopening of the Strait of Hormuz intensified,” Hynes added.

By Gautamee Hazarik and Aparupa Mazumder

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