News 7 days ago

Americas Market Update 14 Jan 2025

Balboa
Galveston Offshore Lightering Area (GOLA)
Houston
Los Angeles
New York
Zona Comun
HSFO
LSMGO
VLSFO

Regional bunker benchmarks have taken mixed directions and bunker operations in New York could be disrupted by strong wind gusts tomorrow.


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

  • VLSFO prices up in Los Angeles ($10/mt) and Zona Comun ($9/mt), and down in New York (8/mt), Houston ($5/mt) and Balboa ($2/mt)
  • LSMGO prices up in Houston ($5/mt), and down in New York ($11/mt) and Balboa ($1/mt)
  • HSFO prices unchanged in Houston, and down in New York ($13/mt) and Balboa ($6/mt)

VLSFO prices in New York and Houston have declined, while the grade’s price in the West Coast port of Los Angeles has gained in the past day.

A lower-priced 500-1,500 mt VLSFO stem fixed in Houston at $608/mt for prompt delivery has put downward pressure on the benchmark. The port’s VLSFO price currently stands at a small premium of $8/mt over New York.

Bunker operations in New York may be suspended tomorrow due to high wind gusts. Tugboats are kept on standby for urgent requirements.

Deliveries in the Galveston Offshore Lightering Area (GOLA) are happening on a case-by-case basis, also due to strong wind gusts. The situation could worsen through the week, according to a source. There could be prolonged delays in bunker deliveries, “if local conditions are deemed unsuitable,” the source said.

Zona Comun's VLSFO price has gained in the past day as a prompt 500-1,500 mt stem was fixed at a higher level yesterday.

Brent

The front-month ICE Brent contract has gained $1.35/bbl on the day, to trade at $80.67/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

Brent’s price has remained above $80/bbl, supported by oil demand growth during the winter season and supply risks from Russia amid stricter US sanctions.

The US Department of the Treasury has announced sweeping sanctions against Russia’s energy sector, targeting oil companies, tankers, insurers and traders, thereby raising oil supply concerns and supporting oil prices.

“These sanctions threaten global oil dynamics, particularly impacting countries like India and China, where 25% of Russian seaborne oil could face disruptions,” SPI Asset Management’s managing partner Stephen Innes said.

Brent’s price has found support from “a combination of strong winter-related demand… not least, the latest rounds of US sanctions on Russia’s oil industry, which went much further than expected,” Ole Hansen, head of commodity strategy at Saxo Bank said.

Downward pressure:

Brent crude shed the previous day’s gains ahead of US Consumer Price Index (CPI) data, which is scheduled to be out tomorrow.

Inflation rate in the US, measured by the change in the CPI, is the key focus this week as markets await the US Federal Reserve's next steps on easing monetary policies in 2025.

Higher interest rates in the US can dampen demand for dollar-denominated commodities like oil, making it costlier for holders of other currencies.

“The mood in the broader financial markets remains downbeat, as investors continue to downgrade expectations of the Federal Reserve’s policy easing this year,” VANDA Insights’ founder and analyst Vandana Hari said.  

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online

Provided by
Engine
Photo of smiling bunker trader in office in white collared shirt

Contact our Experts

With 50+ traders in 12 offices around the world, our team is available 24/7 to support you in your energy procurement needs.