Fuel prices have moved in mixed directions, while high wind gusts are expected to disrupt bunker operations in Zona Comun through Sunday.

IMAGE: Vessel by Argentina's Zona Comun anchorage by La Plata. Antares

Changes on the day to 07.00 CST (13.00 GMT) today:

• VLSFO prices up in Houston and Zona Comun ($6/mt), and down in New York ($6/mt) and Balboa ($1/mt)
• LSMGO prices up in Zona Comun ($13/mt), and down in Balboa ($32/mt) and Houston ($8/mt)
• HSFO prices up in Balboa ($6/mt) and Houston ($2/mt) and down in New York ($5/mt)

Balboa's LSMGO price has fallen sharply and has defied Brent’s upward movement in the past day, after a lower-priced 150–500 mt LSMGO stem was fixed at the port at $732/mt, putting downward pressure on the benchmark.

The port’s Hi5 spread has narrowed to $87/mt today from $94/mt yesterday.

In Argentina, all ports are currently shut down until midnight on Tuesday, 11 February, due to a workers’ protest, which may lead to short delays in bunkering operations, a source said. Bunkering operations may also be suspended in the afternoon.

Additionally, weather conditions at the Zona Comun anchorage are expected to remain turbulent this week. Disruptions are expected at the location between 11–15 February due to high wind gusts.

Lead times for all fuel grades at Zona Comun this week is at 8-10 days.

Brent

The front-month ICE Brent contract has gained by $0.97/bbl on the day, to trade at $70.26/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent futures have found support amid rising geopolitical risk, as talks between the US and Iran remain fragile. Negotiations are ongoing but uncertain, sustaining a risk premium, with continued sanctions pressure and tariff threats linked to Iranian trade, according to a Reuters report.

“Oil prices continue to hold firm… as persistent uncertainty over how talks between the US and Iran evolve,” two analysts from ING Bank said.

Additional support has come from signs of a narrowing supply surplus, underpinned by improved demand from India.

Indian refiners are reportedly steering clear of Russian crude purchases to help secure a trade agreement with the US, while increasing imports from the Middle East and West Africa, Reuters reported.

Downward pressure:

Brent futures have come under some downward pressure after the American Petroleum Institute (API) reported a sharp increase in US crude inventories.

US crude oil stocks rose by 13.4 million bbls in the week ending 6 February, according to API estimates cited by Trading Economics. An increase in crude inventories typically points to softer demand and can weigh on oil prices.

“The American Petroleum Institute’s stocks data for the week to February 6 was bearish,” said Vandana Hari, founder of VANDA Insights.

By Gautamee Hazarika and Tuhin Roy

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