Americas bunker prices have mostly increased, and bunker operations could be suspended in GOLA and Zona Comun again.

PHOTO: Port of New York. Getty images

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

• VLSFO prices up in Zona Comun ($19/mt), Houston ($11/mt), New York ($10/mt), Los Angeles and Balboa ($7/mt)
• LSMGO prices up in Los Angeles ($14/mt), Balboa ($11/mt) and New York ($7/mt), and down in Houston ($16/mt)
• HSFO prices up in Los Angeles ($35/mt), New York ($11/mt), Balboa ($9/mt) and Houston ($7/mt)

Houston’s LSMGO price has countered general market direction and has dropped in the past day with pressure from a lower-priced stem. Meanwhile, New York’s LSMGO price has gained in the past day to widen its LSMGO price premium to Houston's LSMGO from $5/mt yesterday, to $28/mt now.

Los Angeles’ HSFO price has gained heavily in the past day, while the port’s VLSFO price gain has been comparatively smaller. This has narrowed the port’s Hi5 spread by $28/mt to $212/mt. However, Los Angeles’ Hi5 spread is still wider than Hi5 spreads in most other ports in the Americas.

Bunker operations have resumed in the Galveston Offshore Lightering Area (GOLA) today after being suspended yesterday due to bad weather conditions. But strong wind gusts are again forecast to hit over the weekend, which could impact bunkering in the area.

Currently, bunkering is proceeding normally in Zona Comun. But strong wind gusts of up to 36 knots are forecast to hit the anchorage from Saturday onward and could impact bunkering there.

Brent

The front-month ICE Brent contract gained $0.49/bbl on the day, to trade at $87.35/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Escalating tensions in the Middle East continue to support Brent price gains. The failure of a ceasefire agreement between Israel and Hamas has again raised concerns about possible oil flow disruptions in the region.

“The lack of a ceasefire deal between Israel and Hamas continues to keep tensions in the Middle East elevated,” ANZ Bank’s senior commodity strategist Daniel Hynes stated.

The oil market is eagerly awaiting the outcomes of the upcoming OPEC+ Joint Monitoring Ministerial Committee (JMMC) meeting scheduled for next week, where discussions on extending supply cuts for the remainder of the year are on the agenda.

“Supply side issues also remain in focus ahead of a meeting by the OPEC Joint Monitoring Ministerial Committee next week,” Hynes further remarked.

Downward pressure:

US commercial crude oil inventories rose by 3.17 million bbls to 448 million for the week ending 22 March, according to US Energy Information Administration (EIA) data released yesterday. The stock build was much smaller than the 9.3 million bbls build predicted by the American Petroleum Institute (API).

The gasoline stocks also rose by 1.30 million bbls to 232 million bbls, signalling lower demand in the US.

“A shocking build in crude supply might be a bit hard to shake off,” Price Futures Group’s senior market analyst Phil Flynn commented.

“Oil [Brent] traded under pressure… as a report from the American Petroleum Institute showed a substantial build in US inventories, against the market expectations for a drawdown," stated two analysts from ING Bank.

By Debarati Bhattacharjee and Tuhin Roy

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