The region’s bunker prices have moved downward, and bunkering operations in GOLA are facing delays due to rough weather conditions.

PHOTO: Containers stacked on a freight ship at the port in Argentina. Getty Images.

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

• VLSFO prices down in New York ($19/mt), Houston and Los Angeles ($12/mt), Zona Comun ($11/mt) and Balboa ($4/mt)
• LSMGO prices down in New York and Los Angeles ($11/mt), Houston ($10/mt) and Balboa ($5/mt) 
• HSFO prices down in Houston ($7/mt), Los Angeles ($6/mt), New York ($4/mt) and Balboa ($3/mt)

Zona Comun’s VLSFO price declined after two lower-priced VLSFO stems were fixed at the anchorage at $582/mt and $580/mt for 150-500 mt for prompt delivery, putting downward pressure on the benchmark.

Supply is currently tight at the anchorage with recommended lead times of at least over seven days.

New York and Los Angeles’s LSMGO price has recorded the sharpest decline in the past session. At the start of the year, New York traded at a slight discount to Houston, but it has since shifted to a premium of $54/mt and $16/mt to Los Angeles.

New York could experience possible disruptions from high wind gusts until 23 March. There are no reported backlog congestion or bunker barge readiness issues at this time.

Bunker deliveries in the Galveston Offshore Lightering Area (GOLA) are currently facing delays and possible disruptions are expected until 20 March due to rough weather conditions. “Deliveries are being handled on a case-by-case basis by some suppliers,” a source said.

Brent:

The front-month ICE Brent contract has lost $1.28/bbl on the day, to trade at $70.53/bbl at 07.00 CST (13.00 GMT).

Upward pressure:

Brent’s price found some support amid rising instability in the Middle East.

US President Donald Trump vowed to continue military strikes on Yemen-based Houthi armed group and warned that Iran would be held responsible for any attacks carried out by the group, which has disrupted shipping in the Red Sea.

Meanwhile, Israeli airstrikes in Gaza have killed at least 200 people, according to Palestinian health authorities, ending a ceasefire agreement in the region that began in January. This has heightened concerns about potential threats to oil supply, Reuters reported.

Oil prices were “pushed higher as the escalating tensions in the Middle East raised concerns renewed risks to supply in the region,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

Brent futures declined after Russia agreed to Trump's proposal for a temporary halt in attacks between Moscow and Kyiv on each other's energy infrastructure, Reuters reported. This development could lead to more Russian oil entering the global market.

Market watchers suggest that a potential ceasefire might ease sanctions on Russia, increasing oil supply and lowering prices. This expectation has put pressure on crude prices.

“Crude futures were extending… losses, albeit marginally… mostly in response to an initial breakthrough in the Ukraine war situation,” noted Vandana Hari, founder and analyst at VANDA Insights.

Meanwhile, US crude oil inventories rose by 4.6 million bbls in the week ending 14 March, according to American Petroleum Institute (API) estimates cited by Trading Economics. The increase far exceeded market expectations of a 1.2 million-bbl rise. A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent's price.

“Crude futures were also feeling some pressure… from a bearish stocks report from the American Petroleum Institute,” Hari added.

By Gautamee Hazarika and Tuhin Roy

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