Most bunker prices in the Americas have come down with Brent, and the Port of Baltimore remains closed for all inbound and outbound traffic after a bridge collapsed yesterday.

PHOTO: Aerial view of the ports of Long Beach and Los Angeles in southern California in the afternoon. Getty Images

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

• VLSFO prices up in Balboa ($1/mt), and down in Los Angeles ($14/mt), Zona Comun ($9/mt), Houston ($8/mt) and New York ($2/mt)
• LSMGO prices down in Houston ($10/mt), New York ($8/mt), Los Angeles ($7/mt) and Balboa ($6/mt)
• HSFO prices unchanged in Los Angeles, and down in Balboa ($15/mt), New York ($12/mt) and Houston ($2/mt)

New York’s HSFO price has dropped the most in the past day with pressure from a lower-priced stem. Meanwhile, Houston’s HSFO price has fallen marginally, narrowing its HSFO discount to New York from $37/mt yesterday to $27/mt now.

New York’s VLSFO price has also come down slightly in the past day. This has widened the port’s Hi5 spread by $10/mt to $113/mt. Over the past couple of weeks, the port's Hi5 spread has been widening as the VLSFO price increases have been greater compared to HSFO price gains.

Bunkering has been suspended in the Galveston Offshore Lightering Area (GOLA) again today due to rough weather conditions. The area is experiencing strong wind gusts of up to 28 knots, making barge deliveries difficult there. The weather is expected to improve later today.

All vessel traffic remains suspended at the Baltimore port after the Francis Scott Key Bridge collapsed because of a collision with a container ship yesterday. This has affected bunker deliveries at the port and Annapolis Anchorages.

Brent

The front-month ICE Brent contract moved $1.33/bbl lower on the day, to trade at $85.53/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are scheduled to meet on 3 April to discuss their output policies for the remainder of the year. Announcement of this meeting has contributed to Brent’s upward movement today.

Analysts anticipate that members of the OPEC+ group to maintain their production levels at the upcoming meeting.

“Investors have purchased oil at the fastest rate for more than four years, amid optimism that Saudi Arabia and its OPEC+ allies will continue to restrict production while an improving economic outlook boosts consumption,” Reuters’ oil market analyst John Kemp commented.

Brent futures gained more support after Israel's Prime Minister Benjamin Netanyahu refused to participate in ceasefire talks with Hamas.

“Ceasefire talks between Israel and Hamas broke down again, with Israeli Prime Minister Benjamin Netanyahu accusing the group of extreme demands,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Brent futures shed the previous day's gains amid concerns over sluggish demand in the US.

US commercial crude inventories increased by 9.3 million bbls in the week ended 22 March, according to the American Petroleum Institute (API) data cited by Trading Economics. The surge in crude inventories suggests slow demand growth in the world’s largest oil-consuming nation, which could put downward pressure on Brent’s price.

“A sharp rise in U.S. crude inventories and expectations for a potential inaction by OPEC+ in its output policy next week saw further unwinding in oil [Brent] prices in today’s session, as profit-taking accelerates following a strong rally in mid-March,” IG Markets’ market strategist Jun Rong Yeap remarked.

By Debarati Bhattacharjee and Tuhin Roy

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