Americas bunker prices have been pulled down alongside fast declining Brent values in the past day, and Balboa’s fuel oil prices have moved closer to New York and Houston’s.

 

Changes on the day to 08.30 CST (14.30 GMT) today:

· VLSFO prices down in New York and Zona Comun ($17/mt), Balboa ($16/mt) and Houston ($7/mt)

· LSMGO prices up in Los Angeles ($6/mt), and down in New York ($24/mt), Zona Comun ($22/mt), Balboa ($17/mt) and Houston ($12/mt)

· HSFO prices down in Balboa ($34/mt) and New York ($14/mt)

 

Balboa’s HSFO380 price has come down sharply to erase its premium over New York. The ports still price the grade around $50/mt higher than in Houston, where levels have held steadier in the past day.

 

HSFO380 supply has improved but continues to be tight for prompt delivery dates across these ports.

 

Balboa’s VLSFO price has moved closer and closer to levels in New York and Houston in recent days. After pricing it at $30-40/mt premiums of over these ports last week, Balboa’s price has now come down to parity with New York’s, and within $6/mt of Houston’s.

 

VLSFO supply remains scant in Uruguay’s Montevideo, with no resupply date confirmed. LSMGO is available by truck, but priced around $90/mt higher than in nearby Zona Comun and Buenos Aires.

 

Brent

Front-month ICE Brent has slumped $2.64/bbl lower in the day to 08.30 CST (14.30 GMT) today, when it traded at $88.58/bbl.

 

Brent’s rally has run out of steam and the futures contract has slipped down from seven-year highs ahead of tomorrow’s OPEC+ meeting.

 

Some market participants think OPEC+ could phase back production cuts earlier than initially planned. Goldman Sachs says the recent price rally has put pressure on the group from its oil importers and could trigger bigger monthly output increases, according to Reuters.

 

But OPEC+ is still expected to continue to increase its output target by 400,000 b/d for March.

 

“$100 oil might not be too far away as expectations are high that supply will not come close to catching up with demand as OPEC+ will deliver gradual production increase targets that they will fall short of reaching,” says OANDA strategist Ed Moya.

 

The US and Russia clashed at the UN Security Council over troop build-up near Ukraine, accusing the other of being “provocative,” Reuters reports.

 

“The oil market is likely to remain very tight given the geopolitical risks and slower production increases despite high crude prices as oil giants focus on clean energy transition,” Moya adds.