Some ports in the Americas have seen sharp bunker price rises for certain grades over the weekend, while most prices have been rangebound as Brent’s recent rally has slowed.
Changes on the day from Friday, to 09.30 CST (14.30 GMT) today:
- VLSFO prices up in Houston ($13/mt), Balboa ($4/mt), Los Angeles ($2/mt) and New York ($1/mt), and down in Zona Comun ($4/mt)
- LSMGO prices up in Zona Comun ($15/mt), New York ($9/mt) and Balboa ($1/mt), steady in Houston, and down in Los Angeles ($1/mt)
- HSFO380 prices up in Houston ($2/mt), and down in Balboa ($10/mt), Los Angeles ($6/mt) and New York ($4/mt)
Houston’s VLSFO price has bounced back after a dip towards the end of last week. Its day-on-day increase has been outpaced by an $18/mt VLSFO price jump at the New Orleans Outer Anchorage (NOLA), however.
NOLA’s premium over Houston has widened to $23/mt. Its price has also swung to a premium of $12/mt over Corpus Christi.
Bunker fuel availability has tightened in several ports across the Americas. LSMGO is tight for prompt dates in Texas City. Two suppliers can delivery with 2-3 days of lead time, while a string of others have more limited or no availability for near-term dates.
Cristobal remains without HSFO380, VLSFO or LSMGO volumes to supply after stocks dried up. Balboa has seen extra demand from ships transiting through the Panama Canal and unable to bunker in Cristobal. Availability has tightened among some of Balboa’s bunker suppliers as a result.
HSFO380 is unavailable at several locations along South America’s west coast, including Ecuador’s Manta, La Libertad and Guayaquil, and Peru’s Callao.
An Ecuadorian supplier expects to load HSFO380 in the next week. Another supplier is out of both HSFO380 and VLSFO, but expects to have VLSFO back in stock later this month.
VLSFO and LSMGO are also in tight supply in Callao, where a supplier’s earliest delivery date is around three days out.
HSFO380 is available in further up to coast in Balboa, and for prompt delivery dates on the other side of the Panama Canal in Colombia’s Cartagena.
Brent
Front-month ICE Brent crude has edged $0.17/bbl higher on the day since Friday, to $84.96/bbl at 09.30 CST (14.30 GMT) today.
Brent has rallied to a seven-year high on tightening global supply. Global oil stockpiles are under pressure from recovering demand as economies around the world continue to ease Covid-19 restrictions. The US has announced it will reopen entry for vaccinated visitors from 8 November, paving the way for a boost in air travel and tourism.
Tight coal and natural gas markets have spiked prices and prompted a bigger-than-expected seasonal shift to oil-based feedstocks for power plants in Asia and Europe. The switch could boost oil demand by as much as 500,000 b/d in the fourth quarter, the Energy Information Administration (EIA) predicts.
“With no signs of the China energy crunch alleviating soon, and with the rest of northern Asia and Europe competing for scarce energy supplies, particularly gas, the price environment for oil remains constructive,” says OANDA market analyst Jeffrey Halley.