Bunker benchmarks in key Americas ports have mostly moved higher, and bunker deliveries are suspended by bad weather in the Galveston Offshore Lightering Area (GOLA).

Changes on the day from Friday, to 07.00 CST (13.00 GMT) today:

• VLSFO prices up in New York ($14/mt), Houston ($10/mt), Los Angeles ($9/mt), Balboa ($5/mt) and Zona Comun ($3/mt)
• LSMGO prices up in Los Angeles ($20/mt), New York ($14/mt), Balboa ($12/mt) and Houston ($8/mt)
• HSFO prices up in New York ($12/mt), Houston ($9/mt) and Los Angeles ($3/mt), and down in Balboa ($6/mt)

VLSFO prices across the major Americas ports have tracked Brent’s upward move, and prices have gained the most in New York and Houston over the weekend.

Houston's VLSFO benchmark was at a discount to New York's until 2 January and has since been at a slight premium.

Bunker deliveries remain suspended in the Galveston Offshore Lightering Area (GOLA) due to rough weather conditions, including high wind gusts. The situation is expected to persist throughout the week.

In Balboa, LSMGO’s price has gained sharply over the weekend. A higher-priced 50-150 mt LSMGO stem booked at $734/mt for prompt delivery has put upward pressure on the benchmark.

Despite the price gain, Balboa's LSMGO price discount to its neighbouring port Cristobal has widened in the past month and is currently at $18/mt.

VLSFO is tight for very prompt delivery in Zona Comun, with a trader recommending lead times of at least seven days for optimal coverage.

Brent

The front-month ICE Brent contract has gained $0.54/bbl on the day from Friday, to trade at $76.23/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

Brent futures found a strong start to the week, after manufacturing activity in the US and China showed signs of improvement in December.

China's Manufacturing Purchasing Managers' Index (PMI) reading recorded a 50.1% growth in December. In the US, manufacturing PMI increased to 49.3% in December.

A PMI reading above 50 typically indicates good economic health and an expansion in the manufacturing sector, as well as strong demand for commodities like oil.

“As 2025 begins, oil prices are climbing, fueled by robust demand optimism,” SPI Asset Management’s managing partner Stephen Innes noted.

Downward pressure:

Brent’s price felt some downward pressure from a relatively stronger US dollar ahead of other important economic data from the US Federal Reserve (Fed) later in the week.

Minutes from the US central bank’s last meeting will be out on Wednesday.

A stronger US dollar makes commodities like oil costlier for non-dollar holders, thereby denting demand in the market.

Concerns about potential oil sanctions on Iran under Donald Trump's presidency have bolstered market expectations of a supply increase from OPEC+. Analysts suggest that, in such a scenario, Brent's price could fall.

“There will also be concerns over how hawkish Trump will be towards Iran when he takes office later this month,” two analysts from ING Bank said. “It would also leave an opportunity for OPEC+ to increase supply,” they added.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online