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

PHOTO: Aerial view of oil tankers loading fuel at a refinery near Houston. Getty Images.

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

• VLSFO prices up in Houston ($8/mt), Zona Comun ($4/mt), Los Angeles ($3/mt), Balboa ($2/mt), and down in New York ($8/mt)
• LSMGO prices up in Houston ($10/mt), Balboa ($3/mt), and New York and Los Angeles ($2/mt) 
• HSFO prices up in Houston ($11/mt), New York ($6/mt), Los Angeles ($1/mt), and unchanged in Balboa

Bunker fuel prices across all grades have mostly increased in the past session, with Houston’s LSMGO price recording the highest uptick. This has narrowed Houston’s LSMGO price discount to New York from $46/mt a month ago to $32/mt now.

Supply across all grades in Houston remains tight until today, with lead times exceeding seven days. Weather at the east coast port is stable for now, but strong wind gusts are anticipated later in the week.

Balboa’s HSFO price remained unchanged and the port’s Hi5 spread is currently at $61/mt. Supply is good across Panama with recommended lead times of less than a week to seven days.

A dense layer of fog has reduced visibility in the US Gulf Coast ports, delaying bunker operations. Dense fog around the Gulf of Mexico usually runs until March.

In Argentina’s Zona Comun, strong wind gusts exceeding 20 knots are forecast at the anchorage through 23 March, potentially disrupting operations until next Tuesday. Lead times are currently around 10-12 days.

Brent

The front-month ICE Brent contract has gained $0.94/bbl on the day, to trade at $71.74/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent’s price moved higher after the US administration tightened its stance on Iran, aiming to drive the country’s oil exports to zero.

US President Donald Trump has imposed another set of strict sanctions on 19 entities and vessels involved in shipping “millions of barrels” of Iranian crude oil. The news has supported supply-related concerns in the global oil market, according to analysts.

“Crude oil gained as the US ramped up efforts to curtail Iranian oil exports,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “We expect Iran's oil exports to fall by around 1mb/d [1 million b/d],” he added.

Besides, OPEC+ members who breached production quotas in the previous months announced new plans yesterday to compensate for the overproduction. Brent’s price gains were “spurred by an unexpected OPEC/non-OPEC plan to rein in its production and the US announcing yet another wave of sanctions against Iranian oil,” VANDA Insights’ founder and analyst Vandana Hari said.

Downward pressure:

Brent’s price felt some downward pressure following a rise in US crude stocks.

Commercial US crude oil inventories increased by 1.7 million bbls to touch 437 million bbls for the week ending 14 March, according to data from the US Energy Information Administration (EIA).

A build in inventories typically signals weaker oil demand, which can put downward pressure on Brent’s price.

By Gautamee Hazarika and Aparupa Mazumder

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