Americas Bunker Prices Increase Amid Geopolitical Tensions

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  • Bunker prices in the Americas have mostly risen alongside Brent, with bunker operations remaining suspended in Argentina’s Zona Comun due to rough weather and technical issues.
  • Houston’s LSMGO price increased significantly due to strong demand, widening its premium over New York. New Orleans Outer Anchorage saw a drop in VLSFO and LSMGO prices due to low demand.
  • The front-month ICE Brent contract gained, influenced by geopolitical tensions and potential supply disruptions, while concerns over subdued US oil demand and delayed interest rate cuts put downward pressure on Brent futures.

Americas bunker prices have mostly increased, mirroring the rise in Brent oil prices. VLSFO prices rose in Balboa and Zona Comun by $9/mt and in New York by $7/mt. However, these prices decreased in Houston by $14/mt and in Los Angeles by $7/mt.

LSMGO Price Changes

LSMGO prices increased in Houston by $27/mt, Zona Comun by $15/mt, Balboa by $14/mt, New York by $10/mt, and Los Angeles by $2/mt. Additionally, HSFO prices rose in Los Angeles by $11/mt, in New York by $7/mt, and in Houston and Balboa by $6/mt.

Supply and Demand Factors

Houston’s LSMGO price has increased significantly more than New York’s, widening the premium to $22/mt due to strong port demand and tight availability. Most Americas benchmarks saw price upticks this week, while VLSFO and LSMGO prices in New Orleans Outer Anchorage dropped by $16/mt and $20/mt, respectively, due to low demand.

Zona Comun Disruptions

Operations remain suspended in Argentina’s Zona Comun due to rough weather and technical issues with a barge, further adding to disruptions. Weather conditions are forecasted to improve after Tuesday.

Brent Oil Price Trends

The front-month ICE Brent contract gained $1.28/bbl on the day, trading at $91.24/bbl. Brent prices remain elevated due to escalating geopolitical conflicts, sparking concerns over supply disruptions in major oil-producing regions.

Impact on Global Oil

Iran’s retaliation against Israeli attacks and potential restrictions on the Strait of Hormuz heighten supply risks. Additionally, Brent futures edged lower due to concerns over subdued US oil demand and potential delays in interest rate cuts.

Americas bunker prices and Brent remain influenced by geopolitical tensions and market pressures, impacting global oil supplies and demand forecasts. Investors must navigate the complexities of the market to manage risks and seize future opportunities.

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Source: Engine Online