Most bunker prices in the Americas have remained steady, and bunker operations are suspended in Zona Comun again.

PHOTO: A vessel moving into Galveston Bay from the Gulf of Mexico. Getty Images

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

• VLSFO prices up in New York and Balboa ($2/mt), and down in Los Angeles ($2/mt) and Zona Comun and Houston ($1/mt)
• LSMGO prices up in Balboa ($2/mt), and down in Houston ($9/mt), New York ($2/mt) and Los Angeles ($1/mt)
• HSFO prices up in New York ($3/mt) and Houston ($1/mt), and down in Balboa ($14/mt) and Los Angeles ($1/mt)

Balboa’s HSFO price has dropped the most in the past day, with pressure from a lower-priced firm offer. Meanwhile, the port’s VLSFO price has remained roughly steady, widening its Hi5 spread by $16/mt to $164/mt. Cristobal’s Hi5 spread has widened by $9/mt in the past day to $163/mt.

There has been an uptick in demand for HSFO in Balboa this week. Most suppliers can deliver the grade for the enquired dates.

Bunkering has been suspended in Zona Comun again due to rough weather conditions. The area is experiencing wind gusts of up to 27 knots. A window of calm weather later today could enable bunker operations to resume in Zona Comun, before conditions deteriorate again from Sunday onwards. Wind speeds are forecast to intensify and touch 42 knots on Monday.

Zona Comun is experiencing tight availability of VLSFO and LSMGO, with delivery dates extending beyond first week of May.

Bunkering is proceeding normally in the Galveston Offshore Lightering Area (GOLA), after being suspended during the earlier part of this week. However, bunkering is expected to be suspended again on Sunday due to forecast of strong wind gusts.

Brent

The front-month ICE Brent contract dropped $0.81/bbl on the day, to trade at $86.65/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent futures reversed yesterday’s losses after geopolitical concerns resurfaced and war risk premiums once again sparked supply concerns in the global oil market.

Israel allegedly struck a nuclear facility in the Iranian city of Isfahan with a missile yesterday in a retaliatory move, according to several media reports. However, the news remains unconfirmed as the Israeli Defense Forces (IDF) have not claimed any attack.

If confirmed, these reports could raise concerns about the possibility of supply risks translating into actual disruptions, commented ING Bank’s head of commodities strategy Warren Patterson.

“The market has been on edge since Iran launched a missile and drone attack on the Jewish state over the weekend,” said ANZ Bank’s senior commodity strategist Daniel Hynes. “Israel’s response could determine whether oil supplies are ultimately under threat,” he added.

Downward pressure:

Downward pressures acting on Brent today arise from lacklustre demand growth indications after the US Energy Information Administration (EIA) reported an increase in crude oil stocks.

US commercial crude oil inventories increased by 2.74 million bbls to 459.99 million bbls on 12 April – the highest level since June last year, the EIA reported.

The inventory gain was “larger-than-anticipated,” said SPI Asset Management’s managing partner Stephen Innes. “The clear read-through is that [oil] demand is not as rosy as thought and that demand destruction, due to soaring prices at the pump, could be setting in even as we head for summer driving season,” he added.

By Debarati Bhattacharjee and Aparupa Mazumder

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