Bunker fuel prices have plunged across major bunker locations in the Americas, and operations have resumed in GOLA.

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 Balboa ($11/mt), Zona Comun ($8/mt), New York, Houston ($7/mt) and Los Angeles ($1/mt)
• LSMGO prices down in Los Angeles ($22/mt), Balboa ($16/mt), Houston ($14/mt) and New York ($7/mt)
• HSFO prices down in Balboa ($14/mt), New York ($5/mt), Houston and Los Angeles ($4/mt)

The region's bunker prices continue to trend lower with Brent crude compared to recent months.

Los Angeles and Balboa have recorded the steepest drops across all fuel grades, with Los Angeles' LSMGO grade making seeing the largest decline of $22/mt.

Los Angeles' LSMGO is currently trading at a premium of $53/mt over Houston, but at a slight discount of $6/mt to New York. This is a notable shift, as suppliers in Los Angeles typically price the grade higher than in New York.

Bunker deliveries in the Galveston Offshore Lightering Area (GOLA) have resumed today after being suspended on Monday this week. Operations could be disrupted again by high wind gusts, but prolonged delays are not expected, a source says.

Brent

The front-month ICE Brent contract has lost $0.35/bbl on the day, to trade at $61.80/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent has drawn some support after the US Energy Information Administration (EIA) reported a drop is US crude stocks.

Commercial US crude oil inventories declined by 2 million bbls to touch 438 million bbls for the week ending 2 May, according to data from the EIA. The latest EIA data “leaves crude oil inventories at their lowest level since March,” two analysts from ING Bank noted.

A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

Besides, fresh developments in the US-China trade dispute provided some support to Brent. US treasury secretary Scott Bessent is set to meet with a top Chinese official in Switzerland on 10 May to continue negotiations over the tariff war that has disrupted global trade.

Downward pressure:

Brent’s price slumped after the US Fed’s policy meeting, as the market found little reason for optimism over demand growth.

In a largely anticipated move, the US Federal Open Market Committee (FOMC) maintained its key interest rate at a range between 4.25-4.50%.

The news follows mounting tensions among global trade partners amid the ongoing US tariff dispute and growing concerns over oil demand.

“It was a sea of red across commodities as news that the Federal Reserve left US interest rates on hold, and signs it's likely to remain there,” ING Bank analysts said.

By Gautamee Hazarika and Aparupa Mazumder

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