Bunker prices in Americas ports have mostly dropped with Brent, and bad weather could trigger another bunker suspension in Zona Comun.

PHOTO: Oil refinery in Texas City, Texas, located just south of Houston on Galveston Bay. Getty Images

Changes on the day to 08.00 CDT (13.00 GMT) today:

• VLSFO prices down in New York and Balboa ($20/mt), Houston ($18/mt), Los Angeles and Zona Comun ($14/mt)
• LSMGO prices down in New York ($25/mt), Balboa ($23/mt), Los Angeles ($16/mt) and Houston ($14/mt)
• HSFO prices down in New York ($16/mt), Balboa ($15/mt), Los Angeles and Houston ($10/mt)

Houston has seen a substantial rise in the number of stems fixed this week. Between last Friday and so far today, around nine stems have been recorded by ENGINE, almost a double from five stems fixed over the same period last week. Out of the nine stems, five stems have been for VLSFO, three for LSMGO and one HSFO.

LSMGO and VLSFO availability is good in Houston, with most suppliers able to deliver stems with a lead time of 3-5 days.

New York’s LSMGO price has dropped more than Houston’s LSMGO price in the past day, narrowing its LSMGO price premium over Houston's from $39/mt yesterday, to $28/mt now.

Currently, bunker operations are proceeding normally in Zona Comun. However, the area is expected to experience strong gale-force wind over the weekend, which can make barge deliveries difficult there. The weather is forecast to stay rough next week as well, which could cause prolonged delays and disruptions, a source says.

Brent

The front-month ICE Brent contract lost $1.57/bbl on the day, to trade at $81.14/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Currently, the oil market’s attention is on the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

“The key issue that currently moves [Brent] oil prices is whether or not OPEC will extend production cuts into 2025,” Price Futures Group’s senior market analyst Phil Flynn remarked.

The coalition is expected to convene in the first week of June to decide whether an extension of the ongoing 2.2 million b/d voluntary production cut is required in the second half of this year.

“There’s no doubt about the commitment by OPEC plus to continue along the path that they are on,” Flynn said.

Downward pressure:

Brent futures moved lower for the fourth consecutive day amid demand growth concerns in the world’s leading crude oil-consuming country, the US.

“Ongoing market recalibration of expectations over the US Federal Reserve’s monetary policy through the rest of this year remains centre-stage for the oil complex,” VANDA Insights’ founder and analyst Vandana Hari said.

Minutes from the US Federal Reserve’s (Fed) latest Federal Open Market Committee (FOMC) meeting showed that sticky inflation remained the US central bank’s biggest concern.

“The Fed Minutes were a buzz kill for smoking hot commodities after it said that some Fed officials might be willing to raise interest [rates], if need be,” Flynn said.

The Fed’s bearish remarks dampened the oil market’s expectation of a steady demand growth this year as it could delay interest rate cuts.

By Debarati Bhattacharjee and Aparupa Mazumder

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