Bunker benchmarks across the Americas have largely moved downward, and strong wind gusts may delay operations in New York this week.

IMAGE: Afternoon aerial view of the ports of Long Beach and Los Angeles in southern California, US. Getty Images

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

• VLSFO prices up in Balboa ($2/mt), unchanged in Los Angeles, down in Houston ($2/mt), New York and Zona Comun ($1/mt)
• LSMGO prices up in Balboa ($6/mt) and New York ($3/mt), unchanged in Los Angeles, and down in Houston ($7/mt)
• HSFO prices up in Balboa ($5/mt), unchanged in Los Angeles, down in Houston ($5/mt) and New York ($3/mt)

Prices across all the fuel grades have remained unchanged in the port of Los Angeles in the past session. The port is experiencing a significant decline in demand, while bunker fuel availability remains stable, with lead times typically under a week.

Vessel arrivals and import volumes at the port have recorded a sharp decline.

According to Port Optimizer, a ship-tracking system, the number of vessels scheduled to arrive during the week of 4–10 May has dropped by 44% compared to the same period last year.

New York’s VLSFO premium over Houston has widened to $27/mt from $16/mt a month ago. The port's lead times range from 3–5 days for VLSFO and LSMGO, while HSFO requires longer wait times.

Some strong wind gusts are forecast along the east coast port this week, which may delay operations.

Despite sluggish demand in Panama in recent weeks, Balboa has seen price increases across all fuel grades. The port's Hi5 spread is currently at $45/mt.

Brent:

The front-month ICE Brent contract lost $0.38/bbl on the day, to trade at $66.77/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent’s price has found some support after concerns about the US-China tariff war eased.  

The Wall Street Journal reported that the US administration was willing to lower duties on China to as low as 50% in a bid to start negotiations. This news put some upward pressure on oil.

Yesterday, US treasury’s secretary, Scott Bessent, said that the current 145% import tariffs on Chinese goods should come down before trade talks between the two sides could begin, Reuters reports.

Additionally, US President Donald Trump is reportedly considering tariff exemptions on car part imports from China, according to the Financial Times.

The easing tariff tensions has calmed fears of a global trade war and supported demand expectations for commodities like oil, according to market analysts. “Risk assets [like oil] staged a recovery… amid growing hopes for a de-escalation in US-China trade tensions,” two analysts from ING Bank noted.

Downward pressure:

Concerns about excess supply in the global oil market has capped Brent’s price gains today.

OPEC+ member Kazakhstan, after repeatedly exceeding production quota over the past year, has said it would put national interest before the oil coalition’s and continue to maintain higher production levels, Reuters reports.

OPEC+ has faced internal disagreements over quota compliance in the past, with one such rift prompting Angola to leave the alliance in 2023.

“Kazakhstan is openly flouting quotas, pumping at record levels while Saudi Arabia, once the cartel’s swing producer, is increasingly looking like it’s throwing in the towel on price targeting,” SPI Asset Management managing partner Stephen Innes remarked.

On the demand side, Brent came under pressure after the US Energy Information Administration (EIA) reported a small rise in crude stocks.

Commercial US crude oil inventories gained by 244,000 bbls to touch 443 million bbls for the week ending 18 April, according to data from the EIA. A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent's price.

“Oil’s latest leg lower isn’t just a function of oversupply—it’s the market grappling with fractured alliances and fractured demand signals,” Innes said.

By Gautamee Hazarika and Aparupa Mazumder

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