Bunker benchmarks in key Americas ports have tracked Brent higher, and deliveries in GOLA are being handled on a case-by-case basis due to rough weather.

IMAGE: A container ship docked at the Port of Houston at Morgan's Point shot. Getty Images

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

• VLSFO prices up in Zona Comun ($67/mt), Balboa ($25/mt), Houston ($14/mt), Los Angeles ($12/mt) and New York ($2/mt)
• LSMGO prices up in Balboa ($29/mt), New York ($24/mt), Houston ($21/mt) and Los Angeles ($15/mt)
• HSFO prices up in Balboa ($21/mt), Los Angeles ($10/mt), Houston ($8/mt) and New York ($4/mt)

Houston's VLSFO price has gained after a higher-priced 500-1,500 mt VLSFO stem was fixed at $465/mt for prompt delivery today and added upward pressure on the benchmark.

LSMGO prices have also gone up across major ports in the Americas, with New York seeing a sharper increase than Houston. Houston's LSMGO price discount to New York has widened from $20/mt two months ago to $29/mt now.

Bunker availability is good in New York with 3–5 days of lead time advised, and availability remains steady in Houston amid normal weather conditions.

Deliveries in the Galveston Offshore Lightering Area (GOLA) are currently being handled on a case-by-case basis due to high seas and strong wind gusts. Adverse weather conditions are affecting operations today, and a full halt is expected from Monday afternoon.

Zona Comun's VLSFO price has jumped $67/mt higher in the past session. Availability is tight at the anchorage with recommended lead times of 12-14 days.

Brent

The front-month ICE Brent contract gained $1.47/bbl on the day, to trade at $61.97/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

China's Commerce Ministry has recently announced that it is evaluating a proposal from the US to hold talks aimed at resolving President Donald Trump's broad tariffs, signalling a possible easing of trade tensions, according to Reuters.

This development has raised hopes for a de-escalation in the ongoing trade war between the world's two largest economies and top oil consumers.

“Fresh hope of a thaw in the US-China trade war" has "helped extend a… bounce” in oil prices, noted Vanda Insights founder and analyst Vandana Hari.

At the same time, Trump’s threats to impose sanctions on buyers of Iranian oil have added to the upward pressure on oil prices.

“Crude oil prices rebounded as the spectre of more sanctions on Iran raised fears of tighter supplies. President Trump said that any nation or person that buys oil or petrochemicals from Iran will be subject to secondary sanctions,” said Daniel Hynes, senior commodity strategist at ANZ Bank.

In addition, the US Energy Information Administration (EIA) reported a 2.7 million-bbl draw in US commercial crude inventories, defying the American Petroleum Institute’s (API) estimate of a 3.8 million-bbl build, further contributing to the price increase.

Downward pressure:

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

The expectation of additional supply from OPEC+ has put some downward pressure on oil prices.

By Gautamee Hazarika and Tuhin Roy

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