Bunker prices across major Americas ports have moved lower, and several port authorities around the US Gulf Coast have suspended operations due to bad weather conditions.

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

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

• VLSFO prices down in Houston ($3/mt), New York, Los Angeles and Balboa ($2/mt)
• LSMGO prices up in New York ($3/mt), and down in Balboa ($11/mt), Houston ($6/mt) and Los Angeles ($2/mt)
• HSFO prices down in Balboa ($11/mt), Los Angeles, New York ($2/mt) and Houston ($1/mt)

Bunker fuel benchmarks have largely tracked Brent crude’s downward movement, with Balboa’s LSMGO and HSFO prices declining the steepest.

Several port authorities around the US Gulf Coast, including Houston, Texas City, Galveston, Beaumont, Port Arthur, Freeport and Corpus Christi have suspended operations due to a thick layer of fog which has reduced visibility and delayed barge reloadings.

Fog conditions in the area depend heavily on wind directions. Southerly winds from the Gulf typically result in fog in the Houston area, while colder, northerly winds can keep visibility clearer.

“Currently no vessel traffic moving in Houston,” a source says. “Barges are moving around if visibility permits,” the source adds.

Bunker fuel availability for prompt dates has been on the tight side in the Panamanian ports of Balboa and Cristobal lately, with the latter having relatively fewer barges. Vessel transits have slowed in Balboa lately, a source says. Lead times of around 9-10 days are required for prompt VLSFO deliveries in Balboa.

Brent

The front-month ICE Brent contract has inched $0.03/bbl lower on the day, to trade at $74.82/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

Brent crude oil’s price has ended the week on a higher note following sweeping US sanctions against Iran, one of OPEC’s largest oil producers.

Washington's recent measures targeting Iranian oil, which aim to reduce Tehran’s exports to zero has supported oil prices. The global oil market had already anticipated a hardline stance from the Trump administration on Middle Eastern affairs.

“Crude oil endured a volatile session as Trump reiterated tighter sanctions on Iran and higher oil output in the US,” ANZ Bank senior commodity strategist Daniel Hynes said.

The market’s focus will now be on OPEC+’s next decision on whether to increase production or maintain output at current levels. Earlier this week, the Saudi Arabia-led oil producer group decided to stick to its current production policy of gradually raising oil output from April.

The decision to extend production cuts into 2025 signals that OPEC+ believes demand growth might not be robust enough to accommodate the full return of supply anticipated in 2025.

“President Trump has already made it clear that he wants OPEC to increase output. If he is successful in convincing the group to do that, it would help offset any potential losses from Russia and/or Iran,” two analysts from ING Bank noted.

“However, convincing OPEC may prove difficult, particularly considering that Saudi Arabia has a fiscal breakeven oil price of above $90/bbl,” they added.

Downward pressure:

The US Energy Information Administration’s (EIA) crude stocks report on Wednesday, showing a larger-than-expected surge in US crude inventories has capped some of Brent’s price gains.

Commercial US crude oil inventories surged 8.7 million bbls higher to touch 423 million bbls for the week ending 31 January, according to data from the EIA.

The stock build came despite a one percentage point increase in US refinery utilisation, which reached 84.5%.

A surge in US crude stocks can indicate a drop in oil demand, which can keep a lid on Brent price rises.

“Oil prices tumbled as bids vanished, shaking up traders just a day after the U.S. reported a massive crude inventory build that blew past expectations,” SPI Asset Management managing partner Stephen Innes said.

By Aparupa Mazumder

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