Americas Market Update 6 Oct

Prices across the Americas have mostly declined, and bunker fuel availability is tight in Zona Comun.

IMAGE: A cargo ship docked at the Port of Houston. Getty Images

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

• VLSFO prices up in Zona Comun ($1/mt), and down in New York ($63/mt), Los Angeles ($34/mt), Houston ($29/mt) and Balboa ($16/mt)
• LSMGO prices down in Zona Comun ($172/mt), New York ($129/mt), Balboa ($67/mt), Houston ($54/mt) and Los Angeles ($52/mt)
• HSFO prices down in New York ($46/mt), Los Angeles ($39/mt), Balboa ($26/mt) and Houston ($18/mt)

Despite Brent's significant decline, Zona Comun’s VLSFO price has inched up, becoming the outlier amongst benchmark prices across major ports in the Americas.

In Argentina’s Zona Comun, availability has been very tight for both grades this week, with supply available only under prior consultation. Weather conditions at the anchorage have also been rough, and operations are facing delays, a source said.

Prices for both, LSMGO and HSFO, have declined across all major ports in the Americas.

Houston’s LSMGO price has fallen. A lower-priced, 50-150 mt stem, booked at $1,375/mt, may have weighed on the benchmark.

Bunker fuel demand in Houston is healthy, with all three conventional grades available within 4-8 days.

Brent

The front-month ICE Brent contract has lost $4.33/bbl on the day, trading at $97.59/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has remained well-supported this week, as geopolitical risks are locked in a tense equilibrium against some improvement in the supply fundamentals.

Tensions have escalated between Riyadh and Yemen’s Iran-aligned Houthis after the militant group struck Saudi state-owned oil company Aramco’s refinery in Rabigh, causing a fire at the facility.

The group has also warned all international airlines using Saudi airspace to cease operations, calling it an active war zone, following attacks on the King Khalid International Airport and the Abha Airport.

“While there are growing signs of a recovery in oil flows from the Persian Gulf, the market remains nervous about potential supply disruptions from the region,” two analysts from ING Bank said.

Downward pressure:

Brent crude’s price has shed yesterday's gains after the Group of Seven (G7) countries' announcement of the release of emergency oil stocks.

The G7 and their partners have agreed to collectively release up to 100 million bbls of emergency crude oil stocks over the next four months, in coordination with the International Energy Agency (IEA).

Crude oil production across the Persian Gulf has also shown signs of improvement as regional operators adapt to the continuously evolving geopolitical landscape.

Kuwait said that it is producing at 75% of pre-war levels, ING Bank’s analysts noted, adding that “the Saudis also cut the official selling price of their Arab Light into Asia for November loadings, a sign of an improving supply picture.”

By Gautamee Hazarika and Aparupa Mazumder

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