Bunker fuel prices have mostly come down with Brent across the Americas, and availability remains tight in Panamanian and several South American ports.
Changes on the day to 09.30 CST (14.30 GMT) today:
- VLSFO prices up in Los Angeles ($28/mt) and Houston ($3/mt), and down in New York ($7/mt), Zona Comun ($6/mt) and Balboa ($4/mt)
- LSMGO prices up in Los Angeles ($18/mt), and down in Zona Comun ($13/mt), New York ($7/mt) and Balboa ($6/mt)
- HSFO380 prices up in Los Angeles ($7/mt), and down in Houston ($19/mt), New York ($14/mt) and Balboa ($3/mt)
HSFO380 remains in limited supply across the South American west coast. Ports in Peru, Ecuador and Chile are all out of product.
All fuel grades are in limited supply in Cristobal, and have been tightening in Balboa as ships transiting the Panama Canal have been looking at alternatives to Cristobal. At least two suppliers are unable to offer for prompt dates in Balboa. One supplier can deliver with three days of lead time, two others with five days.
Balboa’s VLSFO price has come down against Houston’s in the past day, however, halving its premium to $7/mt.
Certain suppliers in the Houston area are running on tight barge schedules and are unable to commit to new deliveries on prompt dates. Prompt premiums have gone up.
Brent
Front-month Brent dipped $0.68/bbl lower on the day to 09.30 CST (14.30 GMT), when it stood at $84.28/bbl.
“A fall in US industrial production in September would have not helped sentiment, along with weaker GDP numbers from China,” ING strategists Warren Patterson and Wenyu Yao said today.
Yesterday’s drilling report from the Energy Information Administration (EIA) also weighed on sentiment. US shale oil production is expected the increase by 77,000 b/d from October to 8.22 million b/d in November, with a boost from the Permian region.
Brent ran out of steam temporarily yesterday, before picking up again today amid continuous expectations of tightening global oil supply. In the absence of more OPEC+ crude barrels in the market, and with forecasts of a colder temperatures in northern China, Brent has seen renewed support today.
Heating oil demand is buoyant in China, the world’s biggest energy consumer, amid depleted coal and natural gas stocks and spiralling prices. Power plants across Asia and Europe have increasingly been looking towards fuel oils and diesel as feedstocks ahead of peak seasonal winter demand.