Bunker benchmarks across key Americas have largely tracked Brent’s upward movement, and deliveries have been suspended in GOLA.

PHOTO: Shipping containers stacked in the Port in Los Angeles, California. Getty Images

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

• VLSFO prices up in New York ($7/mt), Houston ($5/mt) and Balboa ($4/mt), and down in Los Angeles ($9/mt)
• LSMGO prices up in Los Angeles ($9/mt), Balboa ($6/mt), New York ($5/mt) and Houston ($3/mt)
• HSFO prices up in Los Angeles and Balboa ($4/mt), New York ($3/mt) and Houston ($1/mt)

Bunker prices across the Americas have mostly risen, with Los Angeles' LSMGO seeing the sharpest increase.

Los Angeles' LSMGO discount to New York has nearly been erased this month, coming down from $50/mt on 6 March to $6/mt now, while its premium over Houston has widened from $18/mt to $21/mt today.

The ports of Los Angeles and Long Beach are currently well-supplied, but demand has been weak. “There have been no firm inquiries for this region in the past week,” a source noted.

Suppliers advise lead times of 6–7 days.

A source says that in the Galveston Offshore Lightering Area (GOLA), bunker deliveries are currently suspended due to high wind gusts. Bunker disruptions are expected until the end of the week.

Bunker deliveries at Argentina’s Zona Comun could also be suspended, as the anchorage is facing strong wind gusts exceeding 20 knots. This may cause prolonged delays starting on 30 March, according to another source.

Brent

The front-month ICE Brent contract has gained $0.30/bbl on the day, to trade at $73.99/bbl at 08.00 CDT (13.00 GMT).   

Upward pressure:

Brent crude’s price moved higher after the US Energy Information Administration (EIA) reported a 3.3 million-bbl draw in commercial US crude oil inventories, to touch 434 million bbls for the week ending 21 March.

A decline in crude oil stocks typically signals strong oil demand, which can put upward pressure on Brent’s price. “Crude oil prices gained amid signs of strong demand,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Additionally, US President Donald Trump has threatened to impose 25% tariffs on imports from countries buying Venezuelan oil and gas.

China, India, Spain, Italy and Cuba are among the largest consumers of Venezuelan oil, Reuters reports.

Brent’s price gains were “fueled by a double shot of bullish catalysts: a larger-than-expected drawdown in U.S. crude and fuel inventories and mounting geopolitical tension as the U.S. threatens to impose tariffs on countries importing Venezuelan crude,” SPI Asset Management managing partner Stephen Innes remarked.

Downward pressure:

Uncertainty over tariffs imposed by the Trump-led US administration has kept global financial markets on edge, with analysts fearing a slowdown in demand growth.

Trump has announced import taxes of 25% on cars and light trucks coming into the US. These taxes are set to come into force from next week.

“[The market’s] attention may soon pivot back to demand worries amid the US’ chaotic blitzkrieg of import tariffs against major trade partners,” VANDA Insights’ founder and analyst Vandana Hari said.

Sluggish crude oil demand could lead to lower prices, according to market analysts.

By Gautamee Hazarika and Aparupa Mazumder

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