Bunker prices across the Americas have moved sharply down, and fuel availability remains steady across Houston and New York.

IMAGE: A line of cargo and tanker ships crossing Trinity Bay, from the Gulf of Mexico to the Port of Houston. Getty Images

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

• VLSFO prices down in Zona Comun ($26/mt), Houston ($24/mt), Balboa ($23/mt), Los Angeles ($19/mt) and New York ($6/mt)
• LSMGO prices down in Los Angeles ($36/mt), Balboa ($28/mt), Houston ($24/mt) and New York ($17/mt)
• HSFO prices down in Balboa ($21/mt), Houston ($14/mt), Los Angeles ($11/mt) and New York ($6/mt)

Argentina's Zona Comun has recorded a sharp decline in the past session and supply continues to be limited.

Recommended lead time range between 12-14 days. Although there are no current disruptions, bunker barge operations could be halted if wind speeds surpass 20 knots.

Houston’s VLSFO prices also dropped by $24/mt, widening the port’s VLSFO discount to New York to $37/mt, up from just $5/mt on 6 February.

Bunker fuel availability is steady in New York, with recommended lead times of 3–5 days. However, strong winds forecast through 5 May could cause delays in bunker barge operations.

Los Angeles' LSMGO prices has seen the steepest decline, yet it continues to trade at a premium of $20/mt over New York and $46/mt over Houston.

The West Coast port is set to be among the hardest hit by the US' tariff-driven trade war with China and continues to navigate the ongoing challenges.

Brent

The front-month ICE Brent contract lost $2.85/bbl on the day, to trade at $60.50/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

The US Energy Information Administration (EIA) has reported a 2.7 million-bbl draw in US commercial crude inventories. The draw has defied American Petroleum Institute (API) estimates of a 3.8 million-bbl build.

Saudi Arabia is expected to raise crude oil prices for Asian buyers by $0.3/bbl for June deliveries. This indicates "stable demand" for Middle East crude oil amid the recent oil market weakness, ING analysts said in a note.

Downward pressure:

The looming prospect of oversupply in the global oil market, coupled with fears of a potential slowdown in Chinese oil demand, remain key headwinds for Brent. The benchmark has dropped by nearly $6/bbl over the past week.

Eight OPEC+ members, Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman, have agreed to accelerate the easing of voluntary production cuts and boost the combined output by 411,000 b/d in May, a significant jump from the previously planned increase of 135,000 b/d.

“We see OPEC+ pushing ahead with returning more (even accelerating) barrels onto the [oil] market at the May 5th meeting, despite legitimate demand worries,” energy-focussed hedge fund manager Eric Nuttall said in a social media post.

The US–China tariff war could flip the oil market from a “mild deficit” of 6,000 b/d to a “surplus” of 273,000 b/d in 2025, according to Kpler. The intelligence agency revised China’s crude demand by 160,000 b/d through July, “reflecting peak maintenance and softer refining sentiment amid rising trade tensions.”

By Gautamee Hazarika and Konica Bhatt

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