Americas Market Update 9 Feb

Fuel prices have mostly moved upwards, and cold weather conditions may delay bunker deliveries in New York this week.

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

Changes on the day, from Friday, to 07.00 CST (13.00 GMT) today:

• VLSFO prices up in Los Angeles ($40/mt), Balboa ($26/mt), Zona Comun ($22/mt), Houston ($10/mt) and New York ($6/mt)
• LSMGO prices up in Balboa ($37/mt), Zona Comun ($31/mt), Los Angeles ($8/mt), and down in New York ($16/mt) and Houston ($7/mt)
• HSFO prices up in Los Angeles, New York ($5/mt), and Houston ($2/mt), and down in Balboa ($3/mt)

While HSFO prices at most ports have increased, the grade's price at Balboa bucked the trend and recorded a loss over the past session. A lower-priced 500–1500 mt stem, fixed at $414/mt, may have exerted downward pressure on the grade's price.

In Panama, bunker fuel demand has held steady this week. VLSFO and HSFO have remained very tight at Balboa and Cristobal, with suppliers requiring a notice of at least 7 days to secure deliveries.

Los Angeles has recorded the highest gains for both VLSFO and HSFO among the key ports over the weekend. The port’s Hi5 spread stands at $111/mt.

This marks the second-widest Hi5 spread across major hubs, with New York leading at $116/mt today.

In New York, cold weather might affect bunker deliveries, with ice remaining a persistent issue at the New York Harbor, Philadelphia, and Baltimore, a source said.

HSFO has been tight in New York, with lead times of 6–7 days this week. VLSFO can be delivered in 4 days, while LSMGO is better placed for prompt delivery, with recommended lead times of 1–2 days.

Brent

The front-month ICE Brent contract has gained by $0.87bbl on the day from Friday, to trade at $68.07/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent crude’s price has found some support after the European Commission (EC) proposed a 20th package of sanctions against Russia, a move that could significantly tighten curbs on Moscow’s energy trade.

If implemented, the sanctions will prevent EU-based firms from providing shipping, insurance, financing and other maritime services for Russian crude at any price.

“On energy, we introduce a full maritime services ban for Russian crude oil. It will slash further Russia's energy revenues and make it more difficult to find buyers for its oil,” the EC said in a statement.

Moreover, the package adds an additional 43 vessels to its shadow fleet blacklist, bringing the total number of banned Russia-linked vessels to around 640.

Downward pressure:

Brent crude’s price has lost momentum as nuclear talks between the US and Iran appeared to have made some progress – easing supply concerns.

“Iran enters diplomacy with open eyes and a steady memory of the past year,” Iran’s Foreign Minister Abbas Araghchi wrote on social media platform X (formerly Twitter).

Washington and Tehran have agreed to continue the indirect talks about the latter’s nuclear ambitions, Reuters reported.

“Oil prices came under renewed pressure… after nuclear talks between the US and Iran were seen as constructive,” two analysts from ING Bank noted.

By Gautamee Hazarika and Aparupa Mazumder

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