Americas Market Update 8 July

Bunker prices have shot up with Brent after the US hit Iran with strikes and the truce between the countries is “over,” according to the US president.

IMAGE: The Monjasa Thunder in drydock in the Bahamas' Freeport. Monjasa

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

• VLSFO prices up in Houston ($63/mt), Los Angeles ($30/mt), New York ($21/mt), Zona Comun ($16/mt) and Balboa ($12/mt)
• LSMGO prices up in Zona Comun ($83/mt), Houston ($52/mt), Los Angeles ($41/mt), New York ($30/mt) and Balboa ($27/mt)
• HSFO prices up in Balboa ($25/mt), Houston ($22/mt) and New York ($8/mt), and down in Los Angeles ($10/mt)

Bunker prices have increased sharply for most grades across major Americas ports in the past day. Los Angeles’ HSFO benchmark is the only to have moved against the general market direction, after the grade was indicated at a low of $566/mt today.

VLSFO stems have been fixed in Zona Comun in a range of $674-684/mt today, both for 150-500 mt clips. These stem prices were lower than the benchmark and has added downward pressure to prevent further rises.

Zona Comun’s LSMGO benchmark has shot up and is now at massive $484-500/mt premiums over levels in Brazil’s Paranagua and Santos.

VLSFO is more similarly priced between these three locations. A 150-500 mt stem, with delivery in more than seven days, was fixed in Paranagua before the bunker market galloped higher with crude. Paranagua’s VLSFO benchmark is now on par with Zona Comun’s.

High wind gusts can hamper bunkering in Zona Comun today, before conditions are forecast to calm for the remainder of the week.

Monjasa has redeployed a bunker tanker off the US Gulf Coast after drydock in the Bahamas’ Freeport. The bunker supplier says the Monjasa Thunder has delivered 272 stems since it entered operation in 2024. It is currently near Houston.

Brent

Front-month ICE Brent contract has jumped $5.22/bbl higher on the day to $78.00/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent has strengthened after Iran reportedly attacked three commercial vessels near the Strait of Hormuz on Tuesday, triggering US military retaliation and intensifying tensions across the region.

US President Donald Trump said the memorandum of understanding aimed at ending the conflict with Iran was “over,” according to Reuters.

The renewed hostilities have revived concerns over potential disruptions to Middle East oil supplies.

“Re-escalation in the Persian Gulf has reignited supply concerns, pushing oil prices higher amid questions about the direction of US-Iran peace talks,” two analysts from ING Bank said.

Downward pressure:

Baker Hughes has reported an increase in US oil drilling activity. The number of active US oil rigs rose by five from the previous week, to 445.

The US oil rig count is widely regarded as a leading indicator of future crude oil production, as it reflects current and expected drilling activity across the country's shale sector.

By Erik Hoffmann and Tuhin Roy

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