Most bunker prices in the Americas have come down with Brent, with the notable exception of Houston's gaining VLSFO price.

PHOTO: Oil tanker with a tug boat escort passing under the Corpus Christi Harbor Bridge. Getty Images

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

• VLSFO prices up in Houston ($30/mt), unchanged in Balboa, and down in New York ($10/mt), Zona Comun ($5/mt) and Los Angeles ($1/mt)
• LSMGO prices down in Balboa ($25/mt), Houston ($6/mt), New York ($3/mt) and Los Angeles ($2/mt)
• HSFO prices down in Balboa ($39/mt), Houston and New York ($3/mt), and Los Angeles ($2/mt)

Houston’s VLSFO benchmark has gained sharply in the past day with support from a higher-priced 500–1,500 mt stem fixed for non-prompt delivery. Meanwhile, New York’s VLSFO price has dropped, narrowing its VLSFO price premium over Houston's VLSFO from $44/mt yesterday, to just $4/mt now.

On the other hand, Houston’s HSFO price has dropped marginally in the past day. This has widened the port’s Hi5 spread from $129/mt to $162/mt.

Balboa’s HSFO price has dropped steeply in the past day, while its VLSFO price has remained steady, widening the port's Hi5 spread by $39/mt to $158/mt.

The other Panamanian port, Cristobal, has noted a smaller HSFO price drop in the past day compared to Balboa's steep HSFO price drop. As a result, Cristobal’s HSFO is now trading at a $29/mt premium over Balboa's HSFO.

Bunker operations have been running normally in the Galveston Offshore Lightering Area (GOLA) this morning. However, strong wind gusts of up to 32 knots are forecast again from tomorrow onward, which could impact deliveries, a source says.

Brent
The front-month ICE Brent contract lost $0.18/bbl on the day, to trade at $88.16/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent futures inched higher after the US Energy Information Administration (EIA) reported a massive drop in crude stocks. Commercial crude oil inventories in the US dropped by 6.37 million bbls to 453.63 million bbls in the week ended 19 April, the EIA reported.

Tensions in the Middle East are expected to grow as Israel may soon launch further ground and air assaults on southern Gaza’s Rafah region, Reuters reported. This news has rekindled concerns about the spillover of the Middle Eastern conflict that could disrupt oil flows in the region, analysts said.

“An escalation in proxy conflicts could translate into increased shipping disruptions in the Red Sea, while a more direct conflict between these countries would likely result in large quantities of oil supply coming offline,” J. P. Morgan’s global market strategist Jack Manley said.

Downward pressure:

Despite the decline in US crude inventories, distillate stocks, which include diesel and gasoil, rose by 1.61 million bbls to 117 million bbls, the EIA reported.

Higher distillate stocks have sparked concerns about a slowdown in oil products demand and sluggish economic growth.

“A supportive 6.4m bbl [6.4 million bbls] stock drop reported by the EIA was offset by slowing end user demand for both gasoline and diesel,” Saxo Bank’s strategy team wrote in a client note.

By Debarati Bhattacharjee and Aparupa Mazumder

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