Regional bunker benchmarks have mostly declined in the past day, and prompt supply is available in New York, reports Engine.
Changes on the day, to 08.00 CDT (13.00 GMT) today:
- VLSFO prices down in Houston ($5/mt), New York, Los Angeles and Zona Comun ($3/mt) and Balboa ($2/mt)
- LSMGO prices up in Los Angeles ($3/mt), and down in Balboa ($47/mt), Houston ($5/mt) and New York ($3/mt)
- HSFO prices down in Balboa ($32/mt), Houston ($24/mt), New York ($4/mt) and Los Angeles ($1/mt)
Balboa’s LSMGO price has declined by $47/mt in the past day. One 150-500 mt LSMGO stem fixed at $839/mt yesterday has added downward price pressure on the port’s benchmark. The sharp decline has contributed to narrow Balboa’s LSMGO price premium over Houston’s LSMGO from $57/mt yesterday to $15/mt now.
VLSFO and LSMGO availability remains good in Balboa. Several suppliers can offer grades for both prompt and non-prompt delivery dates. Bunker demand is said to be good in the Panamanian port.
Houston’s HSFO price decline has outpaced that of its VLSFO, widening the port’s Hi5 spread from yesterday’s $167/mt to $186/mt now. At $186/mt, the port’s Hi5 spread is narrower than the spreads of $210/mt in Los Angeles and Balboa.
Availability of all fuel grades for prompt dates is normal in the East Coast port of New York. Demand has been good this week, with several enquiries seen for VLSFO and LSMGO, a source says.
Brent
The ICE Brent Futures market is closed for trading today on account of the Good Friday holiday. Front-month ICE Brent closed at $87.00/bbl on Thursday, which is $0.35/bbl lower than the price was at 08.00 CDT (13.00 GMT) on Thursday.
Upward pressure:
Brent futures traded firm this week, drawing support from escalating geopolitical tensions.
Ongoing attacks on Russian energy facilities and heightened conflict in the Middle East have bolstered prices. Additionally, failed ceasefire attempts between Israel and Iran-backed Hamas militants have contributed to the upward pressure on Brent’s price.
Anticipation of further supply cuts by OPEC+ members ahead of their meeting next week also lifted Brent futures. The oil producers’ group is set to convene a joint meeting on 3 April to deliberate on production levels and potential output reductions.
Downward pressure:
Brent futures felt some downward pressure due to strengthening of the US dollar amid high interest rates.
Higher interest rates make the greenback stronger, which in turn increases borrowing costs for non-dollar currency holders, explained analysts. This situation could potentially accelerate a slowdown in global oil demand growth.
The US Federal Reserve (Fed) maintained its interest rates at the latest Federal Open Market Committee (FOMC) meeting. Analysts anticipate the Fed to further delay rate cuts this year in response to recent robust US inflation figures.
Additionally, a rise in US crude stocks limited Brent’s price gains this week. Commercial crude oil inventories in the US increased by 3.17 million bbls to 448 million bbls on 22 March, according to the US Energy Information Administration (EIA).
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Source: Engine
