Bunker fuel prices in the Americas ports have tracked Brent’s upward movement and bunker deliveries are suspended in the Galveston Offshore Lightering Area (GOLA) due to bad weather conditions.

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

• VLSFO prices up in Balboa ($10/mt), Houston and Los Angeles ($8/mt) and New York ($4/mt)
• LSMGO prices up in Balboa ($11/mt), Los Angeles ($8/mt), New York ($7/mt) and Houston ($1/mt)
• HSFO prices up in New York ($6/mt), Balboa and Los Angeles ($5/mt) and Houston ($1/mt)

Bunker deliveries in the Galveston Offshore Lightering Area (GOLA) have been suspended again, a source says. Prolonged delays due to high wind gusts are expected through 24 February, the source adds.

Vessel transit into the Bolivar Roads anchorage have been halted due to forecasted strong wind gusts. “Vessels currently anchored in the Bolivar Roads Anchorage will be allowed to check-in for departure only,” another source says. Gales and strong wind condition may persist through 20 February.

Balboa’s bunker fuel prices have shot up in the past session. This has erased the Panamanian port’s LSMGO price discount to its neighbouring port Cristobal, which stood at $10/mt a month ago.

Bunker fuel availability for prompt delivery dates has been on the tight side in Balboa and Cristobal. Suppliers in Balboa can offer VLSFO and LSMGO within 7 days. HSFO is very tight and required longer lead times.

Brent

The front-month ICE Brent contract has gained $1.19/bbl on the day, to trade at $76.34/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

Brent futures continued to gain support from concerns over supply disruptions in Kazakhstan.

Several Ukrainian drones struck PS Kropotkinskaya earlier this week, temporarily shutting it down. That is the oil transportation facility of Russia-based pipeline operator Caspian Pipeline Consortium (CPC).

The facility is located in the Kavkazsky district of southern Russia and transports over two-thirds of all oil exports from Kazakhstan, and crude from Russian oil fields, including those in the Caspian Region, CPC said.

“There are concerns over Kazakh oil flows given the repair work needed at a pumping station in Russia damaged by a Ukrainian drone attack,” two analysts from ING Bank remarked. “It is estimated to take 2 months,” they added.

Oil prices gained more support after a Bloomberg report suggested that the OPEC+ members may consider delaying the supply hike set to begin in April. The Saudi Arabia-led group has postponed its decision to increase production three times since initially outlining a plan to bring 2.2 million b/d supply back to the market.

“Today oil prices are supported by reports that OPEC may delay its production increase due to a weak global market,” Price Futures Group’s senior market analyst Phil Flynn said.

Downward pressure:

Peace talks have started between the US and Russia in Riyadh, according to reports. This news has put some downward pressure on Brent’s price today.

US President Donald Trump's administration said that it has agreed to hold further talks with Moscow on reaching a ceasefire agreement in Ukraine after yesterday’s meeting that excluded participation from Kyiv.

“The US and Russia agreed to appoint teams to negotiate a settlement to the Ukraine war,” VANDA Insights’ founder and analyst Vandana Hari remarked.

If finalized, the deal could help alleviate sanctions on Russia’s energy sector that have been disrupting global supply chains.

By Aparupa Mazumder

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