Americas bunker prices have traded higher with Brent, and Houston’s prices have gained against several other key ports.
Changes on the day to 09.30 CST (14.30 GMT) today:
- VLSFO prices up in Houston ($27/mt), Los Angeles ($16/mt), Zona Comun ($11/mt), New York ($7/mt) and Balboa ($5/mt)
- LSMGO prices up in Houston ($32/mt), New York ($14/mt) and Los Angeles ($6/mt), and down in Balboa and Zona Comun ($1/mt)
- HSFO380 prices up in Houston ($20/mt), New York and Los Angeles ($6/mt) and Balboa ($4/mt)
Houston’s bunker prices have surged across grades in the past day. VLSFO and LSMGO have traded in wide $48-53/mt ranges in the past day. Prompt stems fixed at the higher end of those ranges have contributed to push the port’s benchmarks up. Certain suppliers have limited availability for prompt dates in Houston.
Supply remains tight in Balboa, but at least two suppliers can offer VLSFO and LSMGO for prompt dates. A supplier’s earliest delivery date has come down to four days, from an expected 5-6 days earlier this week and last week. Another supplier needs at least five days of lead time, while others have limited availability for prompt dates in the Panamanian port.
Balboa’s VLSFO and LSMGO prices have dropped further against Houston’s, now pricing the grades within $3/mt of the Texan port.
Uruguay’s Montevideo is still out of VLSFO, with no timeline given for when it will be back in stock.
Brent
Front-month ICE Brent has extended its rise by $0.77/bbl on the past day, to $83.79/bbl at 09.30 CST (14.30 GMT).
Brent has hovered around weekly highs today, buoyed by prospects of stronger US fuel demand. A $1 trillion US infrastructure bill passed through both chambers of Congress last week and could boost future fuel demand. The country has also reopened for vaccinated international tourists after a Covid-19 halt, which could see jet fuel demand make a tentative comeback.
Keeping a lid on further price gains, the White House has said it is looking at “tools” to cool prices for domestic fuel consumers after OPEC+ stuck to its policy of limiting output increases to 400,000 b/d.
“President Biden said he wants to see more supply, with the administration looking at other tools such as tapping the strategic reserve,” ANZ commodity strategist Daniel Hynes said.