Americas bunker prices have mostly gained with Brent, with the notable exception of Balboa's declining VLSFO price.

PHOTO: Aerial shot of a cargo ship arriving in the Port of Long Beach, California. Getty Images.

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

• VLSFO prices up in Houston ($13/mt), Los Angeles and Zona Comun ($12/mt), and New York ($4/mt), and down in Balboa ($5/mt)
• LSMGO prices up in Zona Comun ($20/mt), Los Angeles ($15/mt), Houston and Balboa ($14/mt) and New York ($11/mt)
• HSFO prices up in Balboa ($11/mt), Los Angeles ($10/mt), Houston ($9/mt) and New York ($7/mt)

Balboa’s VLSFO price has dropped some in the past day with pressure from a lower-priced stem. Meanwhile, Cristobal’s VLSFO price has gained marginally, to widen its VLSFO price premium over Balboa's from $24/mt yesterday, to $33/mt now.

Unlike its VLSFO price, Balboa’s HSFO price has gained in the past day, narrowing the port’s Hi5 spread by $16/mt to $142/mt.

Bunker enquiries have increased in both Balboa and Cristobal. Traders expect demand to rise even further next month with more vessels transiting. The Panama Canal Authority will increase daily vessel transit through the canal from 27 to 32 next month.

Bunkering has been suspended in the Galveston Offshore Lightering Area (GOLA) again today due to rough weather conditions. The area is experiencing strong wind gusts of up to 32 knots, making barge deliveries difficult there. The weather is expected to remain rough until Monday morning.

Brent

The front-month ICE Brent contract gained $1.38/bbl on the day, to trade at $89.54/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent futures gained this week due to escalating geopolitical tensions in the Middle East.

Risks related to oil security grew after Israel ramped up airstrikes on southern Gaza’s Rafah region yesterday, Reuters reported.

A retaliation from Iran and its proxies will not be too surprising now, according to analysts.

Brent's price gained additional support from the US treasury secretary Janet Yellen's latest comments. Yellen told Reuters that the “weak” first quarter US gross domestic product (GDP) data may be revised higher. "The U.S. economy continues to perform very, very well," Reuters quoted Yellen as saying.

Downward pressure:

Brent's price felt some downward pressure as US economic data disappointed the oil market.

The US GDP recorded a growth rate of 1.6% in the first quarter of this year, while analysts expected a growth of 2.4%, Reuters reported.

The data led to expectations in the market that the US Federal Reserve (Fed) would not cut interest rates anytime soon. But Yellen's remarks waned those concerns. Higher interest rates in the US can potentially dampen demand for dollar-denominated commodities like oil.

Brent’s prices dropped in early morning trade as “US GDP data prompted stagflation concerns,” said Saxo Bank’s head of FX strategy Charu Chanana.

By Debarati Bhattacharjee and Aparupa Mazumder

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