Americas Market Update 6 May

Fuel prices have declined across all major hubs in the Americas, and deliveries off Trinidad have been suspended due to bad weather.

IMAGE: Container vessel sailing in front of the Statue of Liberty. Port of New York and New Jersey.

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

• VLSFO prices down in Zona Comun ($84/mt), Houston ($74/mt), Balboa ($66/mt), New York ($49/mt) and Los Angeles ($45/mt)
• LSMGO prices down in Zona Comun ($143/mt), Balboa ($122/mt), New York ($102/mt), Los Angeles ($92/mt) and Houston ($83/mt)
• HSFO prices down in Los Angeles ($63/mt), Houston ($57/mt), Balboa ($51/mt) and New York ($44/mt)

Fuel prices have dipped tracking Brent’s downward movement.

Houston’s VLSFO price has fallen sharply, while the port’s HSFO price has declined by a smaller margin, narrowing the port’s Hi5 spread to $168/mt today from $185/mt previously.

Houston's VLSFO nonetheless maintains a $25/mt price premium over New York's VLSFO price.

Weather conditions in New York have improved from earlier in the week.

The port’s HSFO price has recorded the smallest decline across all ports and fuel grades. Availability for prompt supply of the grade is slightly tight, with recommended lead times estimated at 5–7 days, a source has said.

In offshore Trinidad, deliveries have been suspended, and disruptions are expected between 5–9 May due to high wind gusts and elevated sea conditions, a trader has said.

Brent

The front-month ICE Brent contract has lost $8.95/bbl on the day from, to trade at $103.15/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

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

US crude oil inventories fell by 8.1 million bbls in the week ending 1 May, according to estimates by the API.

A decline in US crude stocks typically indicates improvement in demand for oil and can put some upward pressure on Brent's price.

Downward pressure:

Brent crude’s price has lost nearly $10/bbl in the previous session following media reports suggesting a ceasefire deal between the US and Iran could be reached soon.

“The oil market has come under renewed pressure as the US-Iran ceasefire appears to still be holding despite a recent flare-up in tensions,” two analysts from ING Bank said.

​A report by Axios stated the US and Iran are finalising a one-page memo to end the Middle East conflict – sending oil prices lower.

Earlier today, US President Donald Trump said that progress has been made toward reaching a ceasefire deal with Tehran.

“Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran,” Trump wrote on social media platform Truth Social.

By Gautamee Hazarika and Aparupa Mazumder

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