Bunker prices have slumped with Brent in the past day, but received some support from a massive US crude stock draw.
Changes on the day to 09.30 CST (14.30 GMT) today:
- VLSFO prices down in Zona Comun ($22/mt), Houston and Balboa ($21/mt), Los Angeles ($20/mt) and New York ($8/mt)
- LSMGO prices down in Zona Comun ($27/mt), Los Angeles ($25/mt), Balboa ($24/mt), Houston ($23/mt) and New York ($10/mt)
- HSFO380 prices down in Houston ($18/mt), Los Angeles and Balboa ($16/mt) and New York ($15/mt)
New Orleans and other Lower Mississippi River ports remain closed after Hurricane Ida struck and caused severe material damage, flooding and blackouts. The ports are not expected to resume operations for several days, and port authorities are assessing the damage.
Bunker suppliers are unable to offer fuel until the Lower Mississippi River and port terminals have been confirmed open. Some vessels may be diverted to bunker in Houston and other ports along the US Gulf Coast that were not affected by Ida.
Houston’s VLSFO price has dropped sharply and widened its discount to New York to $18/mt. Balboa’s price has moved in lockstep with Houston’s, to maintain its $7/mt premium over Houston.
Brent
Front-month ICE Brent has slumped $2.03/bbl lower on the day, to $70.97/bbl at 09.30 CST (14.30 GMT) today.
Refiners in Louisiana are assessing the damage caused by Hurricane Ida as they look to restart refineries, but power outages and widespread flooding may delay the process. 2.3 million b/d of refinery production was halted as refiners braced for the incoming hurricane.
Brent could come under pressure from lower crude demand if offshore oil rigs and platforms restart quicker than refineries.
Two of the 11 rigs and 10 of the 288 platforms that were evacuated in in the Gulf of Mexico in the lead-up to the hurricane have been manned again, the Bureau of Safety and Environmental Enforcement said yesterday.
OPEC+ members are expected to stick to their plan of increasing output by 400,000 b/d in monthly increments when they meet for monthly talks today. The group forecasts the global oil market to have a deficit of just under 1 million b/d this year, before more OPEC+ oil will help to flip the balance to a surplus of 2.5 million b/d next year.
Brent received some support from US Energy Information Administration (EIA) data published today showing a massive 7.2 million bbl crude stock draw. The country’s stocks fell to 425.4 million bbls.