Bunker benchmarks in key Americas ports have moved in mixed directions, and vessel traffic has resumed in the Houston Ship Channel.

Changes on the day, to 07.00 CST (13.00 GMT) today:

• VLSFO prices up in Houston ($12/mt), unchanged in Zona Comun, and down in Balboa ($8/mt), New York ($3/mt) and Los Angeles ($2/mt)
• LSMGO prices up in Houston ($2/mt), and down in Balboa ($3/mt), Los Angeles and New York ($2/mt)
• HSFO prices up in Balboa ($1/mt), unchanged in Houston, and down in New York ($2/mt) and Los Angeles ($1/mt)

Houston's VLSFO price has shot up in the past day, while HSFO has remained broadly stable. The diverging price moves have widened the port’s Hi5 spread by $12/mt since yesterday to $102/mt now.

Bunker fuel availability in Houston is tight across all grades. High wind gusts and an Arctic Front has caused major delays in barge operations in the port. Suppliers require lead times of at least seven days for prompt deliveries.

Rough weather conditions forced the Houston Ship Channel shut earlier this week. Barge traffic has resumed this morning, and the situation will likely improve tomorrow.

Sailing has resumed in Corpus Christi and Texas City this morning. Pilots in Houston are “slowly starting operations,” a source says. Sabine Pass has yet to become operational.

Prompt availability is tight across all fuel grades in the Panamanian ports of Balboa and Cristobal. Suppliers require lead times of 8-9 days to secure stems, according to another source.

Brent

The front-month ICE Brent contract has shed $0.23/bbl on the day, to trade at $78.84/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

A set of stringent sanctions imposed by the US against Russia’s oil industry has continued to lend some support to Brent futures.

The recently departed Joe Biden's administration announced sweeping sanctions against Russia’s energy sector, targeting oil companies, tankers, insurers, traders, etc.

“Crude oil prices continued their volatile performance as traders try to assess the fallout from recent US actions on Russia,” ANZ Bank senior commodity strategist Daniel Hynes said.

On the demand front, cold weather in the northern hemisphere has boosted heating oil demand.

“Oil prices have had a strong start to the year on the back of stricter US sanctions against the Russian energy sector and colder weather supporting demand in parts of the Northern Hemisphere,” ING Bank’s head of commodities strategy Warren Patterson commented.

Downward pressure:

Brent’s price has declined as uncertainties over US President Donald Trump’s tariff threats have weighed on global financial markets. Trump has warned of imposing 25% tariffs on all imports from Canada and Mexico from 1 February.

Additionally, some demand growth concerns resurfaced in the global oil market after the American Petroleum Institute (API) reported an increase of 1 million bbls in US crude oil stocks for the week ending 17 January.

“The API reporting another weekly rise in crude and fuel stocks, also weighed on [oil] prices,” analysts from Saxo Bank said.

Crude oil prices are poised to move lower this year due to additional output from the US, with more drilling in the Trump 2.0 era, market analysts have projected.

Oil futures decreased, "with traders recalibrating their expectations for crude supplies following President Donald Trump's pledge to amplify the US's already record-high crude output,” SPI Asset Management managing partner Stephen Innes said.

By Aparupa Mazumder

Photo credit and source: ENGINE
Published: 24 January, 2025

The following bunker report has been provided by freight market information provider Baltic Exchange for post on Singapore bunkering publication Manifold Times:

Note:

All values are in US$/metric ton, all-in (invoice price), delivered on board
Delivery in 7-10 days
ISO 8217:2010
IFO 380 3.5% Sulphur
IFO 380 0.5% Sulphur
DMA 0.1% Sulphur

Rotterdam – Waalhaven – Maasvlakte range
Houston – Houston Harbor
Singapore – Anchorage, under SBA Scheme
Fujairah – Offshore Anchorage Area

Submitted weekly at Close of Business UK time, on Tuesday & Thursdays

Panellists:
Island Oil Limited, Cockett Marine Oil Pte, Monjasa A/S, KPI OceanConnect

Photo credit and source: Baltic Exchange
Published: 24 January, 2025

The following article regarding Europe and Africa bunker fuel availability has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

• VLSFO supply normal in the ARA
• Rough weather in Las Palmas
• LSMGO available again in Durban

Northwest Europe

Securing very prompt delivery dates for HSFO may be a challenge in the ARA. Lead times of around 5-7 days are advised, a trader told ENGINE. VLSFO and LSMGO availability is comparatively better, with recommended lead times of 3-5 days. 

The ARA hub’s independently held fuel oil stocks have increased by 9% so far this month compared to December, and are at their biggest since June 2024, according to Insights Global data.  

The region has imported 224,000 b/d of fuel oil so far this month, registering an increase from 161,000 b/d imported in December, according to data from cargo tracker Vortexa.

Saudi Arabia (29% of the total) has emerged as the region’s biggest fuel oil import source this month. The UK (19%), Poland (16%), Germany and Lithuania (8% each) and Algeria (5%) were other major import sources this month.

Meanwhile, the ARA's independent gasoil inventories - which include diesel and heating oil - have surged by 16% to their highest since February 2021. It has imported 163,000 b/d of gasoil and diesel so far this month, down from 238,000 b/d imported in December, according to Vortexa data. 

In Germany’s Hamburg, all grades are well stocked, a trader told ENGINE. Recommended lead times are 3-5 days.

Mediterranean

Availability is normal in Gibraltar with lead times of around five days recommended for HSFO, VLSFO and LSMGO, a trader said. Suppliers in the port are still grappling with a backlog of vessels from last week due to bad weather causing congestion, according to port agent MH Bland. Strong congestion is also reported at Algeciras’ inner anchorage, MH Bland said. Supplier delays are reported in both ports. 

Bad weather could hit bunkering in the Gibraltar Strait ports on Monday, according to a source. 

Bunkering has been partially suspended by strong winds gusts in Huelva since Monday. Barge deliveries can still take place in the anchorage area and a full restart is expected from Thursday, MH Bland says.

Rough weather is reported in the Canary Islands’ port of Las Palmas, a trader told ENGINE. Adverse weather is likely to continue until 30 January and trigger bunker disruptions, the trader said. This has stretched lead times for VLSFO, LSMGO and HSFO in Las Palmas to 7-10 days now.   

Meanwhile, low bunker demand is reported in other Mediterranean locations such as Piraeus, off Malta and Istanbul, according to a trader.  

Piraeus has normal availability for LSMGO and VLSFO, while HSFO is subject to enquiry, the trader said. Recommended lead times of around 3-5 days are recommended for optimal coverage. 

Bunkering is proceeding smoothly off Malta so far this week. Adverse weather triggered disruptions last week, but no backlogs have been reported, a source said. Around 3-5 days of lead time is advised for now, but that could soon change as inclement weather may hamper bunkering off Malta on Thursday and Friday. 

In Turkey’s Istanbul, bunker availability is good for all main fuel grades, a trader said. Suppliers can offer with lead times of 3-5 days.   

Africa

In the South African ports of Durban and Richards Bay, VLSFO supply is still tight with lead times of 7-10 days recommended. 

LSMGO supply has now resumed in Durban after suppliers in the port ran dry in the last week of December. But availability is still very tight, with recommended lead times of more than seven days for optimal coverage.

VLSFO, LSMGO and HSFO supply is normal in Mauritius’ Port Louis, a trader said. Suppliers are able to offer prompt delivery dates.

Off Namibia's Walvis Bay, VLSFO and LSMGO grades are well supplied and are high in demand, a source said. Demand is moderate for HSFO, and supply is running a bit tight. Lead times of around five days are recommended for all these grades.

By Manjula Nair

Photo credit and source: ENGINE
Published: 23 January, 2025