Americas bunker prices are mostly down with declining crude values, while Zona Comun’s prices have risen to premiums over several other regional ports.
Changes on the day to 09.30 CST (14.30 GMT) today:
- VLSFO prices steady in Houston, and down in Balboa ($22/mt), New York ($7/mt), Los Angeles ($6/mt) and Zona Comun ($2/mt)
- LSMGO prices up in Zona Comun ($41/mt) and Balboa ($3/mt), and down in Los Angeles ($13/mt), Houston ($10/mt) and New York ($6/mt)
- HSFO380 prices down in Balboa ($16/mt), New York ($14/mt), Houston ($10/mt) and Los Angeles ($3/mt)
Zona Comun’s LSMGO price has surged in the past day and flipped to premiums over several major ports in the Americas, including Balboa, Houston and New York.
Zona Comun’s price for VLSFO has also resisted Brent’s downward pull, holding rather steady on the day. By contrast, VLSFO prices have fallen in Brazil’s Paranagua and Rio Grande and brought them down to $12/mt discounts to Zona Comun.
High bunker demand has kept suppliers busy at anchorages in Zona Comun and around Bahia Blanca lately, shipping agent Antares says. The earliest delivery dates for VLSFO and LSMGO stretched 4-6 days ahead in Zona Comun last week.
But availability of VLSFO and LSMGO has improved some this week, with recommended lead times coming down to 2-3 days, sources say. Strong winds are forecast to hit Zona Comun and could disrupt bunkering on Friday and parts of Saturday and Sunday.
Balboa’s bunker fuel oil prices are sharply down after peaking at the beginning of the week. Its VLSFO premium over Houston has more than halved to $20/mt, as Houston’s price held steady on the day. Its HSFO380 discount to Houston has widened by $6/mt to $36/mt.
Availability remains tight in Balboa, with suppliers’ earliest delivery dates starting from 4-5 days out.
Brent
Front-month ICE Brent has dipped $0.50/bbl lower on the day, to $84.28/bbl at 09.30 CST (14.30 GMT).
The futures contract has seen some headwind today from expectations of another weekly build in US crude oil inventories. A Reuters poll of analysts showed they expect crude stocks to have added 1.60 million bbls.
Indicative inventory figures from the American Petroleum Institute (API) will come out at 15.30 CST (20.30 GMT) today, and be followed by official figures from the Energy Information Administration (EIA) tomorrow.
Brent climbed above $85/bbl earlier today following news that OPEC member states failed to meet output increase targets last month.
The group was allowed to pump 254,000 b/d more oil last month as part of its agreement with allies in the bigger OPEC+ group. But they only managed to fulfil 190,000 b/d of that target, according to a Reuters survey.
While Saudi Arabia and Iraq boosted output to meet their quotas, several African member states including Nigeria and Libya fell short of their targets amid supply disruptions and lacking capacity to produce more.
“The world leaders are likely to be disappointed with the worsening oil market deficit that doesn’t seem like it will get any help from OPEC+,” OANDA analyst Ed Moya said.
OPEC+, which also includes Russia and nine other oil producers, have been increasing output by 400,000 b/d per month, and is expected to stick to that plan when it meets for monthly talks on Thursday.