Americas Market Update 29 June

Fuel prices in the Americas have moved in mixed directions, and bunker demand has weakened in Houston.

IMAGE: Cargo vessel in the port of Galveston. Getty Images.

Changes on the day from Friday to 08.00 CDT (13.00 GMT) today:

• VLSFO prices up in Los Angeles ($16/mt) and New York ($9/mt), and down in Houston and Balboa ($11/mt) and Zona Comun ($4/mt)
• LSMGO prices up in New York ($37/mt), Houston ($24/mt), Zona Comun ($20/mt), Los Angeles ($17/mt) and Balboa ($11/mt)
• HSFO prices up in Houston ($15/mt), Los Angeles ($10/mt) and Balboa ($6/mt), and down in New York ($4/mt)

Houston's VLSFO price benchmark has declined after a lower-priced 500-1,500 mt VLSFO stem, fixed at $568/mt, put downward pressure on the benchmark.

Conversely, the port's LSMGO price has increased after a higher-priced 150-500 mt LSMGO stem, fixed at $909/mt, pushed the benchmark upward.

Bunker demand in the port of Houston has eased compared to the past few weeks, especially for VLSFO, a source said.

Recommended lead times for VLSFO and HSFO are 6-7 days, while LSMGO requires 4-5 days this week.

In the Galveston Offshore Lightering Area (GOLA), bunkering operations are ongoing but face delays due to rough weather, including strong wind gusts and elevated seas, a trader tells ENGINE.

Weather conditions are expected to improve from tomorrow, the trader added.

Brent

The front-month ICE Brent contract has lost $0.21/bbl on the day from Friday, to trade at $72.53/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has felt upward pressure amid renewed strikes in the Middle East.

Over the weekend, the US and Iran exchanged fire – further destabilising the region and threatening the fragile 60-day US-Iran peace deal.

Iran’s navy struck a Panama-flagged oil tanker that was attempting to transit the Strait of Hormuz on Saturday. The vessel was carrying over 2 million bbls of crude oil.

In response, the US Central Command (CENTCOM) launched strikes on Iranian military targets.

Simultaneously, the Israel Defense Forces (IDF) confirmed strikes on three command centers in Nabatieh and Mayfadoun in Lebanon, further complicating the geopolitical landscape that underpin the stability of the Middle East region.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a big rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US increased by seven to 440 units last week.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening, or expected to happen, in the shale sector.

By Gautamee Hazarika and Aparupa Mazumder

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