Bunker benchmarks across the Americas have moved in mixed directions, and strong wind gusts may cause more bunkering delays in Argentina’s Zona Comun.

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

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

• VLSFO prices up in New York ($9/mt), unchanged in Houston, and down in Balboa ($3/mt),
• LSMGO prices up in Houston ($19/mt), and down in Balboa ($8/mt) and New York ($1/mt)
• HSFO prices up in Houston ($10/mt), New York ($2/mt), and down in Balboa ($18/mt)

Houston’s LSMGO prices recorded the steepest increase after a higher-priced LSMGO stem was secured at $707/mt for 50-150 mt for prompt delivery, putting upward pressure on the benchmark.

HSFO prices also rose at the east coast port following the purchase of a higher-priced HSFO stem at $467/mt for 500-1500 mt for prompt delivery, contributing to an upward shift in the benchmark.

This has led to Houston’s HSFO price discount to New York narrowing from $52/mt on 14 March to $38/mt today.

Bunker fuel availability remains steady across all grades in Houston this week, with recommended lead times of under seven days. In New York, suppliers can offer prompt deliveries with expected lead times of 3-4 days.

The US Gulf Coast is in its fog season, leading to reduced visibility across the region.

In Argentina’s Zona Comun, strong wind gusts exceeding 20 knots are forecast at the anchorage through 30 March, potentially disrupting operations. Lead times are currently around 10-12 days.

Brent

The front-month ICE Brent contract has gained $0.10/bbl on the day, to trade at $73.61/bbl at 08.00 CDT (13.00 GMT).   

Upward pressure:

Brent’s price inched up after the American Petroleum Institute (API) reported a draw in US crude stocks.

US crude oil inventories fell by 4.6 million bbls in the week ending 21 March, according to API estimates. The reported drop in US crude inventories exceeded market expectations of a 2.5 million-bbl decrease.

“Numbers overnight from the American Petroleum Institute were bullish,” two analysts from ING Bank noted.

A decline in crude oil stocks typically signals strong oil demand, which can put upward pressure on Brent’s price.

Downward pressure:

Brent’s price gains were capped as oil traders and market analysts assessed the latest efforts to broker a ceasefire in the Russia-Ukraine conflict.

According to a Bloomberg report, officials from the US confirmed that Moscow and Kyiv have agreed to a partial ceasefire deal in the Black Sea, as the truce talks continue in Saudi Arabia.

“Oil prices slid after Russia and Ukraine agreed to a maritime ceasefire,” ING Bank’s analysts said.

A ceasefire deal between Russia and Ukraine could see the US lifting its sanctions on Russian oil exports, which in turn could increase global oil supply, according to market analysts.

By Gautamee Hazarika and Aparupa Mazumder

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