Bunker prices across the Americas have moved in mixed directions, and dense fog may disrupt bunkering operations in the US Gulf Coast this week.

PHOTO: A tugboat at the Houston harbor. Getty Images

Changes on the day to 08.00 CDT (13.00 GMT) today:    

• VLSFO prices up in New York ($7/mt), Balboa ($5/mt), Houston ($4/mt) and Los Angeles ($1/mt), and down in Zona Comun ($7/mt)
• LSMGO prices up in Los Angeles ($3/mt) and New York ($2/mt), and down in Houston ($21/mt) and Balboa ($1/mt)
• HSFO prices up in New York ($3/mt), Los Angeles ($2/mt) and Balboa ($1/mt), and down in Houston ($5/mt)

Houston’s LSMGO price has recorded the biggest decline in the past session, after a lower-priced 50-150 mt LSMGO stem was fixed at $654/mt with prompt delivery, putting downward pressure on the benchmark.

This has widened Houston’s LSMGO price discount to New York from $20/mt a month ago to $55/mt now.

Bunker fuel availability in Houston is slightly tight until Friday this week.

Availability in New York and the East Coast is good for prompt deliveries, but a lead time of at least four days is recommended by suppliers.

Operations at the US Gulf Coast ports have been experiencing disruptions due to fog in the area, which has reduced visibility. Dense fog around the Gulf of Mexico usually runs until March.

Brent

The front-month ICE Brent contract has gained $0.40/bbl on the day, to trade at $71.81/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

Brent's price rose on the back of instability in the Middle East and China's plans for additional economic stimulus.

US President Donald Trump vowed to continue strikes against Yemen’s Houthis unless they halt their attacks on ships in the Red Sea. On Monday, Trump stated he would hold Iran responsible for any attacks carried out by the Houthi armed group, which it backs in Yemen. This contributed to the rise in Brent futures.

Oil prices were “aided by concerns of a wider Middle East conflict,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

“Along with US strikes on the Houthis in Yemen, several factors provided support to the market,” analysts from ING Bank said.

Meanwhile, Israeli airstrikes in Gaza killed at least 200 people, Reuters reported citing Palestinian health authorities. Tuesday’s attacks ended a week-long standoff over-extending a ceasefire deal that had paused fighting since January.

China’s State Council announced a “special action plan” aimed at boosting domestic consumption, including measures to increase residents’ income, Reuters reported.

“China unveiled plans to revive consumption, while Chinese retail sales and fixed asset investment growth came in stronger than expected,” the ING Bank analysts noted.

Downward pressure:

Oil investors' focus is now on talks between US President Donald Trump and Russian President Vladimir Putin later today on ending the Ukraine war.

Market analysts believe a potential peace deal could ease sanctions on Russia and bring its crude supply back to the global market, putting downward pressure on prices.

“Trump is scheduled to talk to President Putin today about a proposed ceasefire. Energy markets will be watching closely for any progress -- particularly whether a potential peace deal might include the resumption of some Russian energy flows,” two ING Bank analysts commented.

By Gautamee Hazarika and Tuhin Roy

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