Bunker fuel benchmarks moved upwards across the Americas, and bunker deliveries are suspended in the Gulf of Mexico's GOLA region.

IMAGE: View of the Houston Ship Channel with barges. Getty Images

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

• VLSFO prices up in New York ($17/mt), Houston ($16/mt), Balboa ($12/mt), Zona Comun ($11/mt) and Los Angeles ($5/mt)
• LSMGO prices up in New York ($32/mt), Balboa ($26/mt), Houston ($22/mt) and Los Angeles ($10/mt)
• HSFO prices up in Houston ($14/mt), New York ($10/mt), Balboa ($7/mt) and Los Angeles ($5/mt)

New York's VLSFO and LSMGO prices recorded steep increases in the past session, after two higher-priced stems were fixed at the port, pushing the benchmarks upward.

A 500-1500 mt VLSFO stem was fixed at $489/mt, and a smaller 50-150 mt LSMGO stem was fixed at $649/mt.

Fuel availability across all grades in New York remains good. Suppliers continue to recommend lead times of under 7 days.

Houston's HSFO price recovered the most with an increase of $14/mt. However, it is still trading at a discount of $22/mt to New York, down from $47/mt on 5 March.

In the Galveston Offshore Lightering Area (GOLA), bunker fuel deliveries have been suspended due to elevated sea conditions. "Delays are expected through 27 May," a source said.

In the past session, Balboa's VLSFO price gained more than the port's HSFO price, widening its Hi5 spread to $20/mt.

Brent

The front-month ICE Brent contract has gained $0.93/bbl on the day from Friday, to trade at $64.77/bbl at 08.00 CST (13.00 GMT). 

Upward pressure:

Oil prices have gained over the weekend amid diminishing prospects of a US-Iran nuclear deal.

Both nations concluded a fifth round of talks last week, that showed “some but not conclusive progress” according to media reports citing Iran’s foreign minister Abbas Araghchi.

Tehran has not agreed to stop its nuclear enrichment program, Iran's foreign ministry spokesperson Esmail Baghaei said, as quoted by Reuters, adding that no timeline has been set for the sixth round of talks with Washington.

The agreement could potentially lead the US administration to lift some sanctions on Iranian oil and bring more supply back to the market.

“There are concerns that the Trump administration may tighten sanctions on Iran to force it to drop its nuclear ambitions,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Oil investors' focus is now shifting toward concerns over excess supply as OPEC+ prepares to meet again on 1 June.

“We’re likely to hear lots of noise this week ahead of the OPEC+ meeting on Sunday, 1 June, where the group will decide on output policy for July,” two analysts from ING Bank said.

Market analysts expect the Saudi Arabia-led group to increase output by another 411,000 b/d in July – the third time in a row.

“This should keep the market well supplied over the second half of this year,” the two analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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