Most bunker prices in the Americas have dropped, and bunker operations have been 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 Los Angeles ($18/mt) and Balboa ($1/mt), unchanged in New York, and down in Houston ($7/mt) and Zona Comun ($5/mt)
• LSMGO prices up in New York ($4/mt), and down in Balboa ($11/mt), Los Angeles ($8/mt) and Houston ($4/mt)
• HSFO prices down in Balboa ($15/mt), Houston ($4/mt), Los Angeles ($3/mt) and New York ($1/mt)

Houston’s LSMGO price has dropped in the past day, under pressure from a lower-priced stem. On the other hand, New York’s LSMGO price has gained some, to widen its LSMGO price premium over Houston's LSMGO from $47/mt, to $55/mt.

Availability of VLSFO and LSMGO has been tight for very prompt dates in New York. Most supplier need a lead time of 6-9 days to deliver stems there.

Barges in the Houston area continue to experience delays following the temporary closure of the Houston Ship Channel over the weekend due to flooding. While the channel has reopened to all traffic, suppliers are still working to catch up with deliveries and barge reloadings from oil terminals. Delays are expected for deliveries in the region until delivery schedules return to normal.

Bunkering operations have been suspended in Zona Comun today due to adverse weather conditions. The area is currently facing wind gusts of up to 31 knots.

Brent

The front-month ICE Brent contract moved $0.58/bbl lower on the day, to trade at $82.41/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent futures remained supported amid reports that Israel has rejected Hamas’ latest truce proposal and launched another round of ground and air attack on Gaza’s southern Rafah region.

This news has renewed supply disruption fears in the global oil market, analysts said. “The lingering geopolitical flash point and headline risk could keep a bid under oil prices into the weekend,” SPI Asset Management’s managing partner Stephen Innes said.

There is increasing speculation that OPEC would consider extending its existing production cuts into the third and fourth quarters of this year. The oil producers’ group is scheduled to convene on 1 June to discuss supply cut policies.

“The market anticipates a high probability of [OPEC+] oil producers extending some output curbs,” Innes added.

Downward pressure:

A build in US crude stocks contributed to the downward pull in Brent futures. US commercial crude inventories gained 509,000 bbls in the week ended 3 May, according to the American Petroleum Institute (API) estimates.

“[Brent] crude oil traded lower after the API reported across-the-board increases in US crude and fuel stockpiles,” Saxo Bank’s strategy team wrote in a note.

Concerns about a slowdown in the US economy have heightened, after the country released poor manufacturing index reading and jobs data. These datasets have supported the narrative of subdued demand in one of the largest oil consuming nations, adding more downward pressure on Brent's price.

The global oil market’s concerns about “weaker-than-expected economic growth in the US have intensified,” Innes added.

By Debarati Bhattacharjee

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