Bunker fuel benchmarks in the Americas have moved in mixed directions, and deliveries have been suspended in Zona Comun.

IMAGE: A line of tanker ships crossing Trinity Bay, from Gulf of Mexico. Getty Images

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

• VLSFO prices up in Balboa ($10/mt), Los Angeles ($9/mt) and Zona Comun ($7/mt), and down in New York ($8/mt) and Houston ($4/mt)
• LSMGO prices up in Balboa ($17/mt) and Los Angeles ($10/mt), and down in New York ($21/mt) and Houston ($6/mt)
• HSFO prices up in Los Angeles ($8/mt), Houston ($7/mt), New York ($5/mt) and Balboa ($3/mt)

Houston’s LSMGO price has fallen in the past session. A lower-priced 0-50 mt stem was fixed at $622/mt with prompt delivery, putting downward pressure on the benchmark.

Houston's VLSFO price has also declined. A 50-150 mt stem was fixed at $478/mt with prompt delivery, which has weighed on the benchmark.

Availability of both fuel grades is steady in the port, with recommended lead times of 5-7 days.

Los Angeles has recorded price increases across all fuel grades. Lead times in the port are currently under a week.

"Spot rates on the Pacific are continuing to rise, though there’s some disagreement on just how much, depending on the index you look at. Since the 90-day pause in US-China trade tensions, we’ve seen a surge in cargo out of China, which is driving rates up - and we could well see further increases in the weeks ahead," said Lars Jensen, chief executive of Vespucci Maritime.

According to a source, bunker deliveries have been suspended by high wind gusts in Argentina's Zona Comun.

“Suppliers will attempt deliveries when wind speeds drop below 20 knots. With strong winds forecast to persist through 27 May, prolonged delays are likely,” a source said.

Brent

The front-month ICE Brent contract has edged $0.03/bbl higher on the day, to trade at $63.84/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent’s price has felt some upward pressure following renewed pressure on Russian oil exports.

The European Union (EU) has adopted a 17th sanctions package against Moscow, targeting its shadow fleet of nearly 200 oil tankers carrying Russian crude oil.

“The EU has listed 189 additional vessels that are part of the shadow fleet of oil tankers or contribute to Russia's energy revenues, bringing the total number of listings to 342,” the European Commission said in a statement.

“The EU is throwing around the idea of lowering the G7 price cap for Russian oil,” two analysts from ING Bank said.

Meanwhile, finance ministers and central bankers of the G7 group of developed nations condemned Russia’s aggression in Ukraine at a summit in Canada yesterday. They threatened to “maximize pressure such as further ramping up sanctions” if no progress is made towards a peace deal with Ukraine.

Downward pressure:

Brent has slipped following reports of oversupply in the global oil market.

The Saudi Arabia-led OPEC+ alliance is considering a third consecutive output hike of 411,000 b/d in July, according to a Bloomberg report.

“What it does indicate is that leaders, including Saudi Arabia, are serious in their efforts to force members, who are overproducing against their quotas, to rein in supply,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Oil market analysts currently await the 1 June OPEC+ meeting, where the group is expected to finalise output levels for July.

“The oil market is under renewed pressure as noise builds around what OPEC+ will do with their July output levels,” ING Bank analysts said.

By Gautamee Hazarika and Aparupa Mazumder

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