Regional bunker prices across key Americas ports have tracked Brent’s downward movement and bunker deliveries have resumed in Galveston Offshore Lightering Area (GOLA).

PHOTO: Vessels at Argentina's Zona Comun anchorage by La Plata. Antares

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

• VLSFO prices up in Zona Comun ($13/mt), and down in Houston ($9/mt), Los Angeles and Balboa ($3/mt) and New York ($1/mt)
• LSMGO prices down in Houston ($10/mt), New York ($4/mt), Los Angeles ($3/mt) and Balboa ($2/mt)
• HSFO prices up in Balboa ($1/mt), and down in Houston ($10/mt), Los Angeles ($4/mt) and New York ($3/mt)

Zona Comun’s VLSFO price has inched up in the past session, while other key ports recorded a decline. Prompt VLSFO availability is tight at the anchorage, where a bout of high winds delayed barge re-loadings and bunker deliveries.

The price moves have contributed to narrow New York’s VLSFO premium over Houston further, which has come down from $19/mt two months ago, to $16/mt now.

Suppliers in New York can offer both VLSFO and LSMGO for prompt deliveries, a source says. HSFO is slightly tight and needs longer lead times. Rough weather conditions may delay bunker operations at the port this week.

Bunker deliveries in the Galveston Offshore Lightering Area (GOLA) are underway, but prolonged delays due to high wind gusts are expected until tomorrow, a source said.

Bunker fuel availability for prompt delivery has improved in the Panamanian ports of Balboa and Cristobal. Suppliers in Balboa offer VLSFO and LSMGO within 4-5 days, but HSFO is tight and needs longer lead times.

Brent

The front-month ICE Brent contract has lost $0.74/bbl on the day, to trade at $69.99/bbl at 07.00 CST (13.00 GMT). 

Upward pressure:

Brent crude’s price felt modest upward pressure after Kazakhstan’s Energy Minister Almassadam Satkaliyev reaffirmed the country’s intentions to stay within OPEC+’s designated crude oil production quotas.

Kazakhstan's OPEC+ production quota is set at about 1.47 million b/d, Reuters reports.

“In March, we [Kazakhstan] will strive to achieve the OPEC+ quota of about 1.5 million bpd [1.5 million b/d],” Reuters quoted the country’s deputy energy minister Alibek Zhamauov as saying.

Additionally, Ukraine launched a massive drone attack on Moscow earlier today, injuring several civilians and causing a brief shutdown at four airports in the Russian capital. The news has further increased supply-related concerns.

Downward pressure:

Brent’s price moved lower amid growing concerns of an economic slowdown in the US and weak demand scenario.

Escalating recession fears in the US have weighed on sentiments in the broader financial markets, dragging down US stock indexes and putting downward pressure on commodities, according to market analysts.

Over the weekend, US President Donald Trump warned of a “period of transition” in the world’s largest oil consumer’s economy, when asked about a potential recession in the country, according to a Reuters report.

“Trump’s comments triggered a wave of selling as investors started pricing in the risk of weaker growth in demand,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

By Gautamee Hazarika and Aparupa Mazumder

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