Bunker prices across the Americas have moved in mixed directions, and deliveries have been suspended in Zona Comun because of rough weather.

PHOTO: Oil refinery in Texas City, located just south of Houston. Getty Images

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

• VLSFO prices up in Zona Comun ($16/mt), Los Angeles ($15/mt), Houston and Balboa ($2/mt), and unchanged in New York
• LSMGO prices up in Los Angeles ($11/mt) and Balboa ($1/mt), and down in Houston ($5/mt) and New York ($2/mt)
• HSFO prices up in Los Angeles ($5/mt) and Balboa ($2/mt), down in Houston ($6/mt) and New York ($3/mt)

VLSFO prices have moved upward, with Zona Comun recording the highest increase in the past session. Deliveries are currently suspended at the anchorage, which is facing high winds of over 20 knots.

Prompt availability is tight with expected lead times of at least 10 days.

Houston and New York have seen modest price movements, while Los Angeles is experiencing a stronger upward trend across all fuel types.

Los Angeles' HSFO for instance, is priced at premiums of $32/mt over New York, and $79/mt over Houston.

The Houston Pilots suspended all pilot operations due to fog yesterday, before restarting operations for outbound sailings early this morning, a source said.

Balboa’s HSFO price has increased slightly after two 500-1,500 mt HSFO stems were fixed in the port at $471/mt and $475/mt with prompt delivery.

Suppliers recommend lead times of at least seven days in advance to ensure smooth deliveries in both Balboa and Cristobal.

Brent

The front-month ICE Brent contract has gained $0.23/bbl on the day from Friday, to trade at $74.22/bbl at 08.00 CDT (13.00 GMT).    

Upward pressure:

The price of Brent crude has moved higher as growing supply disruption concerns have helped offset oversupply fears.

The US government’s latest sanctions on Iran’s oil exports have crimped Iranian oil flows in the physical oil market, according to analysts.

“US sanctions on Iran’s oil industry appear to be biting with at least 11 US sanctioned tankers containing Iranian oil reportedly sitting idled off the coast of Malaysia,” ANZ Bank senior commodity strategist Daniel Hynes said.

Some of the vessels, containing as much as 17 million bbls, “have been sitting there for over a month,” he added, noting that the news underscores the disruptions to trade flows.

Downward pressure:

Over the weekend, US President Donald Trump threatened to hit buyers of Russian crude oil with additional 25-50% tariffs, Reuters reports. This news has put some downward pressure on Brent’s price.

Trump’s administration has warned of potential tariffs on countries that continue purchasing Russian crude oil, if a ceasefire deal with Ukraine fails to materialise.

It is not the potential tariffs on Russian oil themselves that weigh on Brent, but their knock-on effect on oil trading and global economic growth.

The recent wave of Trump’s tariff threats has rattled market analysts and investors, sparking fears of a global trade war that could dampen demand for commodities like oil. Weak crude oil demand could lead to lower prices, according to market analysts.

By Gautamee Hazarika and Aparupa Mazumder

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