Americas bunker prices have mostly gained with Brent, and bunker operations are suspended in Zona Comun.

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

• VLSFO prices up in Zona Comun ($10/mt), New York ($8/mt), Houston ($6/mt) and Los Angeles ($4/mt), and down in Balboa ($10/mt)
• LSMGO prices up in Los Angeles ($4/mt) and Houston ($3/mt), and down in Balboa ($12/mt) and New York ($3/mt)
• HSFO prices up in Houston ($16/mt), New York ($7/mt), Balboa ($5/mt) and Los Angeles ($4/mt)

Houston’s HSFO price has gained the most in the past day with support from two higher-priced firm offers. The port’s VLSFO price has had a modest gain, to narrow its Hi5 spread from $100/mt yesterday, to $90/mt now.

Balboa’s LSMGO price has dropped by $12/mt in the past day. One 150-500 mt LSMGO stem fixed at $665/mt has added downward price pressure on the port’s benchmark. Cristobal’s LSMGO price has risen by $9/mt, to widen its LSMGO price premium over Balboa's LSMGO from $4/mt yesterday, to $25/mt now.

Bunkering has been suspended in Argentina's Zona Comun anchorage today due to adverse weather conditions. The area is experiencing strong wind gusts of up to 32 knots, making barge deliveries difficult there.

Rough weather conditions are forecast to persist over the coming days and intermittently next week, which could cause prolonged delays and disruptions in the anchorage, a source says.

Bunker operations are expected to be suspended in New York tomorrow due to strong wind gusts.

Brent

The front-month ICE Brent contract has gained $1.47/bbl on the day, to trade at $74.74/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price moved higher after the US Federal Reserve (Fed) cut its key interest rate by a massive 50 basis points for the first time since 2020, bringing the central bank’s benchmark rate to a range between 4.75% and 5.00%.

Lower interest rates in the US can boost demand growth for dollar-denominated commodities like oil as it makes the greenback weaker against other currencies. Brent’s price moved into a “positive territory,” after the US Fed announced its rate cut, ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile, a drop in US crude stocks also supported the oil demand growth expectations in the world’s largest oil consuming nation. Commercial crude oil inventories in the US dropped by 1.63 million bbls to touch 418 million bbls on 13 September, according to the US Energy Information Administration (EIA).

Oil market traders are also closely monitoring geopolitical developments in the Middle East. Walkie-talkies and other hand-held pager devices used by Iran-aligned Hezbollah armed group detonated yesterday across southern Lebanon, Reuters reported.

The news of devices exploding has raised concerns of a wider Israel-Lebanon conflict in the oil-rich region, with the latter blaming the Israel Defense Forces (IDF) for the blasts.

“Tensions remain high after Iran-backed Hezbollah accused Israel of orchestrating an attack that killed several people,” Hynes added.

Downward pressure:

Brent’s price remains under some downward pressure due to concerns over slowing demand growth in China.

Chinese refiners processed about 59.07 million mt (13.91 million b/d) of crude oil in August, down 6.2% from the same period a year ago, market intelligence provider JLC reported citing data from China’s National Bureau of Statistics (NBS).

Additionally, the country’s oil imports also remain tepid. China imported 11.56 million b/d of crude oil last month, down from 12.43 million b/d imported in August 2023.

“China has obviously been the key concern when it comes to demand,” two analysts from ING Bank said.

By Debarati Bhattacharjee and Aparupa Mazumder

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