Bunker prices have mostly been rangebound in the Americas in the past day, while Houston has seen notable price gains against other ports.
Changes on the day to 09.30 CST (14.30 GMT) today:
- VLSFO prices up in Houston ($4/mt), steady in Balboa, and down in New York ($2/mt), Los Angeles and Zona Comun ($1/mt)
- LSMGO prices up in Houston ($13/mt), Zona Comun ($12/mt), Balboa ($6/mt), Los Angeles ($5/mt) and New York ($3/mt)
- HSFO380 prices up in Houston and Los Angeles ($14/mt) and Balboa ($4/mt), and steady in New York
Houston’s LSMGO price has gained on higher-priced 0-50 mt and 50-150 mt stems in the past day. Prompt availability of the grade can be tight with some suppliers in the Houston area, while others can deliver as soon as the next day.
The Texan port’s LSMGO and VLSFO premiums over Balboa have narrowed to $5-6/mt after gains in Houston outpaced those in other regional ports.
Houston’s HSFO380 price is particularly strong, having risen $35/mt above New York’s and $46/mt above Balboa’s prices.
With HSFO380 strong relative to VLSFO, Houston’s Hi5 spread has narrowed to $89/mt – significantly less than New York and Los Angeles’ $122-124/mt, and Balboa’s $141/mt.
Brent
Front-month ICE Brent crude has fallen for a third consecutive day, coming down by $0.28/bbl to $82.60/bbl at 09.30 CST (14.30 GMT).
OPEC+ has agreed to maintain its policy of limiting monthly crude output increases to 400,000 b/d for December, delegates told Argus Media. The group met for monthly talks today and was widely expected to defy calls from the US and others to pump more.
Under its current plan, OPEC+ intends to increase monthly crude output by 400,000 b/d in each month to April, and then by 432,000 b/d per month until its all of its historic 10 million b/d cuts from last year have been phased back.
Brent has also seen headwind from a bigger-than-expected weekly build in US crude inventories, and from a heightened possibility that Iran nuclear negotiations could resume.
Negotiations have been put on ice since Iran’s President Ebrahim Raisi was elected in July, amid scepticism from both sides. A resumption of negotiations is slotted in for 29 November, and could pave the way for the US to lift sanctions on about 1.5 million b/d of Iranian crude.