Prices have moved up in major ports in the Americas, and bunker fuel availability is tight in Los Angeles.

PHOTO: Oil refinery with a view to downtown Houston. Getty Images

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

• VLSFO prices up in Los Angeles ($14/mt), New York ($6/mt) and Houston ($3/mt), and down in Balboa ($12/mt) and Zona Comun ($7/mt)
• LSMGO prices up in New York ($16/mt), Houston ($7/mt) and Balboa ($6/mt), and down in Zona Comun ($33/mt) and Los Angeles ($15/mt)
• HSFO prices up in Los Angeles ($26/mt), Balboa ($21/mt), Houston ($13/mt) and New York ($9/mt)

Balboa’s VLSFO price has countered Brent’s upward movement and dropped in the past day, with pressure from several lower-priced firm offers. Meanwhile, the port’s HSFO price has increased by $21/mt, narrowing its Hi5 spread by $33/mt to $122/mt.

Despite the gain in Balboa’s HSFO price, the benchmark is still trading at a $18/mt discount to Cristobal’s HSFO price.

Los Angeles’ LSMGO price has dropped in the past day, while LSMGO prices in Seattle and Vancouver have gained marginally. However, Los Angeles’ LSMGO prices continue to trade higher than LSMGO prices in Vancouver and Seattle.

Securing VLSFO and LSMGO stems for prompt dates in Los Angeles remains tight. Several suppliers require lead times of more than seven days in the port.

Brent

The front-month ICE Brent contract rose by $0.11/bbl on the day, to trade at $83.73/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent futures gained some support on the possibility of OPEC+ extending the ongoing 2.2 million b/d output cut agreement beyond June. The coalition might keep the voluntary cuts in place in the third quarter of this year if demand for crude continues to decline, Reuters cited three sources familiar with the matter.

“OPEC plus could extend its voluntary production cuts beyond the second quarter and into the New Year,” Price Futures Group’s senior market analyst Phil Flynn said. “The plunge in oil might reverse if OPEC sources are correct and OPEC signals an extension of the cuts,” he added.

The oil producers' group is set to convene on 1 June to discuss output policies and supply cuts.

Downward pressure:

Brent futures dipped further as the oil market went into a wait-and-see mode about the outcomes of the latest ceasefire negotiations between Israel and Hamas taking place in Cairo, Egypt.

“Hopes of a breakthrough are riding high. Hamas said on Thursday it was sending a delegation to Egypt for further ceasefire talks, which was seen as a sign of progress,” Vanda Insights’ founder and analyst Vandana Hari said.

The anticipation of prolonged higher interest rates, along with an unexpected crude inventory build in the US, has sparked concerns about oil demand and exerted downward pressure on Brent price

Commercial crude oil inventories in the US rose by 7.27 million bbls to 461 million bbls last week - the highest level since June 2023.

By Debarati Bhattacharjee and Aparupa Mazumder

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