Bunker benchmarks in the Americas ports have taken mixed directions, and bunkering has been suspended in Zona Comun and GOLA.

PHOTO: Container ships and jetties in Panama's Port of Balboa. Georgia Tech

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

• VLSFO prices up in Zona Comun ($20/mt) and New York ($6/mt), unchanged in Houston, and down in Balboa ($3/mt)
• LSMGO prices up in New York ($19/mt), and down in Houston ($42/mt) and Balboa ($15/mt)
• HSFO prices up in New York ($6/mt) and Houston ($5/mt), and down in Balboa ($4/mt)

Houston’s LSMGO benchmark has dropped sharply over the weekend with pressure from several lower-priced firm offers. Meanwhile, New York’s LSMGO price has countered Brent’s downward movement and has gained since Friday, to flip its LSMGO price discount to Houston's LSMGO, to a $30/mt premium now.

Houston’s Hi5 spread has narrowed to $125/mt as the port’s HSFO has gained marginally, while the VLSFO benchmark remained steady.

All three grades can be secured for prompt dates in Houston. One supplier can deliver HSFO there with a lead time of six days.

Bunker operations have been suspended in Argentina’s Zona Comun anchorage and in the Galveston Offshore Lightering Area (GOLA) on the US Gulf Coast today due to rough weather conditions. The weather is forecast to improve from tomorrow morning at both anchorages.

Brent

The front-month ICE Brent contract lost $0.35/bbl on the day from Friday, to trade at $86.30/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Despite Brent’s latest price drop, the benchmark has remained supported due to geopolitical tensions between Israel and Iran that have kept the oil market on its edge with supply concerns.

“[Oil] investors should pay close attention to oil prices as the war continues to evolve,” J. P. Morgan’s global market strategist Jack Manley said.

Oil market analysts continue to price in the chances of an Israeli airstrike in the future that could disrupt Iranian oil facilities. “Any further escalation would only bring the oil market closer to actual supply losses,” ING Bank’s head of commodities strategy Warren Patterson said.

The oil market has been beset with further supply-side risks. The US government reimposed oil sanctions on Venezuela after the country’s President Nicolás Maduro failed to fully meet the commitments made regarding holding fair presidential elections in the second half of this year.

This could potentially disrupt about 600,000 b/d of crude exports from Venezuela, ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent futures decline today can be attributed to the de-escalation of conflict between Israel and Iran.

“Crude futures were on a slippery slope… as relative calm on the Israel-Iran front over the weekend started to chip away at the Mideast geopolitical risk premium in prices,” VANDA Insight’s founder and market analyst Vandana Hari said.

It seems that currently both Iran and Israel are downplaying the implications of the latest events, market analysts added. 

“Iran downplaying Israel’s attacks and showing no urgency to retaliate,” has put downward pressure on Brent’s price, Saxo Bank’s head of FX strategy Charu Chanana said in a note.

By Debarati Bhattacharjee and Aparupa Mazumder

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