Bunker prices have mostly gained with Brent across the Americas, and Balboa’s VLSFO price has risen to bigger premiums over regional ports amid tight supply.
Changes on the day from Friday, to 09.30 CST (14.30 GMT) today:
- VLSFO prices up in Balboa ($11/mt), Los Angeles ($9/mt) and Zona Comun ($5/mt), and down in New York and Houston ($1/mt)
- LSMGO prices up in Los Angeles ($16/mt) and Balboa ($6/mt), steady in Houston, and down in Zona Comun ($2/mt) and New York ($1/mt)
- HSFO380 prices up in Los Angeles ($21/mt), New York ($10/mt), Houston ($9/mt) and Balboa ($2/mt)
A 150-500 mt VLSFO stem was fixed in Balboa over the weekend, and helped push up the port’s benchmark price.
Supply of all fuel grades has been tight across Panamanian ports since supplies were running low last month, especially in Cristobal. Resupply cargoes arriving towards the end of October provided some relief, but long lead times are still advised.
Lead times in Cristobal and Colon range between 9-12 days for VLSFO and LSMGO. Certain suppliers are out of product to offer. A supplier can deliver VLSFO with lead times of around six days in Balboa.
Balboa’s VLSFO price has shot up to premiums of $40/mt over Houston, and also $5/mt above prices in offshore Gulf Coast locations such as the Galveston Offshore Lightering Area (GOLA) and the New Orleans Outer Anchorage (NOLA).
VLSFO and LSMGO supplies are also tight with certain suppliers in NOLA. Nine days of lead time is advised.
Balboa’s LSMGO is more competitively priced with regional ports, at near parity with Houston and at $16-17/mt discounts to GOLA and NOLA.
With HSFO380 prices rising in several major US ports, while holding back more in Balboa, Balboa’s discounts to Houston, Los Angeles and New York have widened to $22-32/mt.
Brent
Front-month ICE Brent has climbed $0.70/bbl on the day since Friday, to $84.78/bbl at 09.30 CST (14.30 GMT) today.
Brent has regained some lost ground after coming under pressure following China’s announcement over the weekend it will release barrels from its strategic gasoline and diesel reserves. The world’s biggest energy consumer seeks to ease some of the recent tightness in its market, especially for diesel. Chinese refineries have said they will follow suit by ramping up runs this month.
Concerns over a global oil supply deficit and high prices have prompted the US, Japan and India to renew their pleas for OPEC+ to increase output, to alleviate what US energy diplomat Amos Hochstein calls “an energy crisis,” according to Bloomberg. Their worry is that consumers feel the pinch when prices hover near multi-year highs.
OPEC+ will meet on Thursday for monthly talks, and is expected to stick to its current plan of phasing back 400,000 b/d of oil cuts in monthly increments. Member states Kuwait, Iraq and Angola have come out supporting the plan, saying it will help balance supply and demand.