Bunker prices in the Americas have moved in mixed directions amid steady Brent values, and bunker operations have been suspended in GOLA and Zona Comun.

PHOTO: Harbour craft ahead of a cargo vessel in the Houston area. Port Houston

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

• VLSFO prices up in Los Angeles ($5/mt) and New York ($2/mt), and down in Balboa ($20/mt), Houston ($5/mt) and Zona Comun ($2/mt)
• LSMGO prices up in Los Angeles and Balboa ($3/mt) and Zona Comun ($1/mt), and down in Houston ($40/mt) and New York ($9/mt)
• HSFO prices unchanged in Balboa, and down in New York ($8/mt), Houston ($6/mt) and Los Angeles ($1/mt)

Houston’s LSMGO price has dropped the most in the past day, with pressure from a lower-priced stem. New York’s LSMGO price has dropped marginally by comparison and gone from a $2/mt premium over Houston's price to a wide $33/mt premium now.

Balboa’s VLSFO price has fallen in the past day with several firm offers at lower levels, while the port’s HSFO price has remained unchanged. This has narrowed its Hi5 spread from $185/mt yesterday, to $165/mt now.

Bunker operations remain suspended in Zona Comun due to rough weather conditions. The area is experiencing strong gale-force wind gusts of up to 35 knots, making barge deliveries difficult. The weather is forecast to stay rough until Thursday, which could cause prolonged delays and disruptions, a source says.

Bunkering has also been suspended in the Galveston Offshore Lightering Area (GOLA) today due to rough weather conditions.

Brent

The front-month ICE Brent contract has dropped by a marginal $0.05/bbl on the day, to trade at $89.60/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

After shedding some gains at the start of the week, Brent’s price has again risen above the $90/bbl mark amid heightened geopolitical tensions in the Middle East.

Iran launched over 300 drones and missiles on Israel over the weekend. “This marks an unprecedented and dangerous development in an already volatile region,” said Jorge León, senior vice president for oil market research at Rystad Energy. 

Oil market analysts are now closely monitoring Israel’s response to the recent attack as further escalation of the Middle Eastern conflict could expose “the crude oil market to further price hikes,” remarked SPI Asset Management’s managing partner Stephen Innes.

“Oil traders are now closely scrutinizing whether the recent Iran attack represents a ‘one-and-done’ scenario, a determination that will wield significant influence over financial [oil] markets,” he added.

Brent futures also gained after China reported stronger-than-expected gross domestic product (GDP) data for the first quarter of this year. The country’s GDP grew at a rate of 5.3%, Reuters reported. Positive GDP data shows that China’s economy is growing, which in turn could boost oil demand in the country.

Downward pressure:

China’s latest crude import data has weighed on Brent futures. On a daily basis, the country imported 11.55 million b/d of crude oil in March, down around 6% from 12.32 million b/d during the same time in 2023, market intelligence provider JLC reported.

The decline in imports has sparked concerns about weakening demand growth in China, which could prompt Brent futures to lose further upward momentum.

This “lacklustre” import figure has raised questions about China’s stimulus measures and its efficiency towards a complete post-COVID economic recovery, Innes said.

Besides, OPEC has ample spare capacity that can offset supply disruptions due to a broader geopolitical conflict in the Middle East, according to analysts.

“The market is comforted by the fact that OPEC has ample spare oil capacity ready should supply be disrupted,” argued ANZ Bank’s senior commodity strategist Daniel Hynes.

By Debarati Bhattacharjee and Aparupa Mazumder

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