Bunker price benchmarks have generally trended higher, while southwest winds could disrupt bunker operations in New York.

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

• VLSFO prices up in New York and Zona Comun ($4/mt), Houston ($3/mt), and down in Balboa ($3/mt) and Los Angeles ($1/mt)
• LSMGO prices up in New York ($26/mt), Balboa ($8/mt), Houston ($6/mt), Los Angeles ($5/mt) and Zona Comun ($1/mt)
• HSFO prices up in Balboa ($6/mt) and New York ($5/mt), and unchanged in Houston and Los Angeles

New York's LSMGO price has increased by the highest margin of $26/mt, defying the general market movement.

The grade is trading at a significant premium of $83/mt to Houston, up from $21/mt premium on 5 February.

HSFO availability has improved in New York after some suppliers received fresh resupply earlier this week. Recommended lead times for all three fuel grades are 4–5 days.

"Some southwesterly winds are expected over the weekend at NYH and could disrupt operations," a source said.

Balboa's HSFO price has increased, while VLSFO has declined, narrowing the Hi5 spread to $36/mt.

In Balboa and Cristobal, HSFO and LSMGO can be delivered in 6–7 days. HSFO is tight in Balboa this week, with some suppliers able to deliver while others have no stock.

VLSFO is readily available at both ports, and the shortest time it can be delivered by one supplier is within 1–2 days.

Brent

The front-month ICE Brent contract has gained $0.46/bbl on the day, to trade at $69.63/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has gained amid market optimism over trade talks between the US and the European Union (EU), following closely on the heels of a recent US-Japan deal.

Both trade partners are expected to come to an agreement that could boost trade and support demand growth for commodities like oil, analysts say. “The main upward impetus [to oil] was coming from market optimism that the US and the European Union are closing in on a trade deal,” said VANDA Insights’ founder Vandana Hari.

Earlier this week, the US and Japan reached a deal under which Japan’s auto sector will face a reduced tariff of 15%, down from the previously imposed 27.5%.

“The US says it has managed to conclude several trade-deals this week, including with Japan and the Philippines,” two analysts from ING Bank noted.

Duties on Japanese goods that were scheduled to come into effect from 1 August will also be lowered to 15% from 25%.

“These deals should help reduce uncertainty and also ease some of the demand concerns that have been lingering in the oil market,” ING analysts added.

Downward pressure:

The US administration has reportedly allowed US oil company Chevron to resume operations in Venezuela. This news has put some downward pressure on Brent today.

Washington is preparing to announce new authorisations to Chevron’s key-oil partner - Venezuela’s state-run oil company PDVSA, Reuters reported, citing five sources.

Earlier this year, US President Donald Trump had revoked a license given to Chevron to operate in Venezuela. The new authorisation will allow both companies to resume joint operations and conduct oil-for-debt swaps in the sanctioned OPEC country.

“This reversal coincides with the release of some Americans detained in the South American country,” ING Bank analysts said.

If approved, this move could see Venezuelan oil exports rise by about 200,000 b/d, the analysts remarked. “Welcome news to US refiners that will ease some tightness in the heavier crude market,” they added.

By Gautamee Hazarika and Aparupa Mazumder

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