Bunker fuel prices have moved in the downward direction, and deliveries are facing delays in GOLA due to high wind gusts.

IMAGE: View of the Houston Ship Channel with barges, loading docks and industrial plants in the background. Getty Images

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

• VLSFO prices up in Balboa ($3/mt), and down in New York ($13/mt), Houston ($10/mt), Los Angeles and Zona Comun ($9/mt)
• LSMGO prices up in Los Angeles ($1/mt), and down in New York ($24/mt), Balboa ($21/mt) and Houston ($9/mt)
• HSFO prices unchanged in Los Angeles, and down in Balboa ($14/mt), New York ($8/mt) and Houston ($3/mt)

Houston's VLSFO price recorded a $10/mt decline after a lower-priced VLSFO stem was fixed at $465/mt for 150-500 MT for prompt delivery, putting downward pressure on the benchmark.

Bunker fuel availability across all grades in Houston remains stable.

New York has recorded a sharper decrease in VLSFO. However, the port is currently trading at a premium of $19/mt to Houston.

Trade tensions and new tariffs with China have hit the West Coast ports of Los Angeles and Long Beach the hardest, leading to a drop in shipments.

Around 45% of the Port of Los Angeles’ business is made up by shipments from China, but this is expected to drop as several major US retailers have stopped importing goods from the Asian country due to the new tariffs.

Balboa’s VLSFO price increased while HSFO declined, resulting in the port’s Hi5 spread widening to $50/mt.

Operations in the Galveston Offshore Lightering Area (GOLA) are currently facing delays, due to high wind gusts, a source said. Further possible disruptions are expected until 2 May.

Brent:

The front-month ICE Brent contract lost $1.34/bbl on the day, to trade at $63.35/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Supply concerns in the global oil market continue to support Brent futures.

On Tuesday, the US government sanctioned three vessels and three shipping companies for allegedly supporting Yemen-based Houthi militants. The vessels allegedly delivered liquefied petroleum gas (LPG) and gas oil to the Houthi-controlled Ras Isa port.

The move reinforces Washington’s commitment to tightening sanctions on Iran and its proxies including the Houthis in Yemen, Hezbollah in Lebanon and Hamas in Gaza. Brent’s price found some support after the announcement, according to market analysts.

Downward pressure:

Brent’s price has moved lower after the American Petroleum Institute (API) reported a rise in US crude stocks.

US crude oil inventories gained by 3.8 million bbls in the week ending 25 April, according to API estimates.

Market analysts expected a much smaller rise of 390,000 bbls. A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent's price.

The API report was “largely bearish”, according to two analysts from ING Bank.

Besides, concerns about oil demand growth amid the global trade war has weakened market sentiment, according to analysts. Oil prices remain under pressure amid ongoing tariff tensions and growing speculation that OPEC+ may ease production restrictions in the upcoming months.

“Lingering tariff risks and expectations of OPEC+ loosening output curbs continue to pressure oil prices,” the analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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