Most bunker prices have dipped with Brent across the Americas in the past day, while New York’s fuel oil prices have gained.
Changes on the day to 09.30 CST (14.30 GMT) today:
- VLSFO prices up in New York ($14/mt), and down in Los Angeles ($12/mt), Balboa ($6/mt), Houston and Zona Comun ($3/mt)
- LSMGO prices up in Los Angeles ($10/mt) and Zona Comun ($1/mt), and down in Balboa ($11/mt), Houston ($8/mt) and New York ($4/mt)
- HSFO380 prices up in New York ($4/mt), steady in Los Angeles, and down in Houston ($9/mt) and Balboa ($8/mt)
Houston and Balboa’s VLSFO prices have dipped from multi-month highs with downward pressure from Brent. The fuel grade is now priced at similar levels in Houston, Texas City and Freeport, while ports like Galveston and New Orleans have it around $10/mt higher, and Corpus Christi around $20/mt higher.
New York’s HSFO380 and VLSFO prices have defied Brent’s downward pull and gained on the day. Prompt deliveries of all grades are possible in the US East Coast port, with price offers competitive between suppliers. Certain suppliers with term contract commitments may not be able to accommodate prompt stems to the same extent.
Suppliers in Cristobal have replenished stocks after running low earlier this month. Several low sulphur fuel oil cargoes have arrived in Cristobal and nearby storage terminals along Panama’s Caribbean coast from the US in the past week, according to vessel tracking.
Cristobal’s VLSFO and LSMGO prices have been propped up by the recent tightness and remain $6-7/mt above those in Balboa. Availability has been relatively better in Balboa, although also tightening with increased demand while Cristobal has been less of an option.
A supplier’s earliest delivery date for VLSFO and LSMGO in Balboa is about six days out. The grades are in good availability for delivery dates further out.
Brent
After a sharp rise in the previous session, front-month ICE Brent shed $0.41/bbl in the past day, to $86.07/bbl at 09.30 CST (14.30 GMT) today.
Global oil supplies remain under pressure and the futures contract rallied to seven-week intraday highs yesterday. Forecasts of a colder-than-usual November in is expected to trigger power plants to pull more heating oil and other oil derivatives as feedstock.
“A colder November has energy traders bracing for a very tight market that will be met unprecedented demand this winter,” OANDA analyst Ed Moya said.
OPEC+ supply restraint is expected to keep the market firmly in a deficit over the winter and well into the first half of next year, Moya added.
Brent’s rally has run out of steam earlier today amid weaker Chinese demand prospects. The Chinese government has intervened to keep a lid on surging coal and natural gas prices. If prices are reigned in, it could limit power plants from further switching to oil-based fuels.
Global gas-to-oil switching could boost oil demand by 1 million b/d, Goldman Sachs estimates according to Reuters. The bank now forecasts Brent could climb to $90/bbl by the end of the year.