The region’s bunker fuel prices have tracked Brent’s downward movement and bunker deliveries in GOLA are still suspended due to rough weather conditions.

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

• VLSFO prices down in New York ($6/mt), and Houston, Los Angeles and Balboa ($4/mt)
• LSMGO prices down in Houston ($9/mt), New York ($8/mt), Los Angeles ($6/mt) and Balboa ($4/mt)
• HSFO prices down in New York ($5/mt), Houston and Los Angeles ($4/mt) and Balboa ($2/mt)

Bunker fuel prices across all grades have moved lower in the past session, with Houston’s LSMGO price declining the most. This has widened Houston’s LSMGO price discount to New York from $20/mt a month ago to $46/mt now.

Bunker fuel availability across all grades in Houston is tight for prompt delivery dates, despite low demand. Suppliers in the port recommend lead times of at least seven days for VLSFO and LSMGO.

High wind gusts have disrupted bunkering operations in the Galveston Offshore Lightering Area (GOLA). Deliveries continue to remain suspended at the anchorage. Prolonged delays are expected between 21-24 February, a source says.

Bunker deliveries in Canada’s Montreal port is also facing delays due to bad weather conditions. The situation is expected to persist between 21-24 February. Barges are currently working only during daylight hours, another source says.

Brent

The front-month ICE Brent contract has moved $0.61/bbl lower on the day, to trade at $75.88/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

Brent’s price found little support from escalating fears of a supply squeeze.

Operations remain halted at Caspian Pipeline Consortium’s (CPC) pumping station located in the Kavkazsky district of southern Russia, after it came under a Ukrainian drone attack on Monday.

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

“Kazakh crude exports from the Black Sea port of Novorossyisk remain reduced by about 30%, or 380,000 b/d, following a Ukrainian drone attack on the Kropotkinskaya pumping station,” VANDA Insights’ founder and analyst Vandana Hari said.

Downward pressure:

Brent’s price moved lower after the US Energy Information Administration (EIA) reported a rise in US crude oil inventories.

Commercial US crude oil inventories increased by 4.6 million bbls to touch 432 million bbls for the week ending 14 February, according to data from the EIA.

A surge in US crude stocks can indicate a drop in oil demand, which can cap Brent's price rise.

By Aparupa Mazumder

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