News 2nd Jun, 2023

Americas Market Update

Los Angeles
New York
Zona Comun

Benchmarks have moved up across Americas ports in the past day, and bad weather could disrupt Zona Comun bunkering later today.

PHOTO: Harbour craft ahead of cargo vessel in the Houston area. Port Houston

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

  • VLSFO prices up in Los Angeles ($26/mt), Balboa and Zona Comun ($25/mt), New York and Houston ($20/mt)
  • LSMGO prices up in Zona Comun ($50/mt), Los Angeles ($33/mt), Balboa and New York ($33/mt) and Houston ($9/mt)
  • HSFO prices up in Balboa ($21/mt), New York ($19/mt) and Houston ($13/mt)

New York’s LSMGO price has gained heavily in the past day, while Houston’s LSMGO made a modest rise. The price moves have again flipped Houston’s LSMGO price over New York from $11/mt premium yesterday to a $10/mt discount now.

LSMGO benchmarks in Los Angeles and Balboa have also gained heavily, widening the ports’ LSMGO price premium over Houston from yesterday's $16-21/mt to $40-42/mt now.

Most bunker prices have fallen this week along with a sliding Brent. Zona Comun’s LSMGO has plunged by $219/mt since last Friday, followed by New York’s LSMGO, which has come down by $200/mt.

Bunker operations are running smoothly in Argentina’s Zona Comun. However, bunker operations are likely to be disrupted at the anchorage later today due to strong wind gusts.


The front-month ICE Brent contract has gained by $3.14/bbl on the day, to $75.78/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent futures gained to reverse earlier losses after US Federal Reserve governor Philip Jefferson said the central bank is considering keeping its key interest rate steady at its upcoming meeting. Indications of an interest rate freeze have boosted optimism in the crude oil market and other commodity futures that rely on consumer demand.

Brent was further supported after the $31.4 trillion US debt ceiling bill was passed in Washington with majority support from both Democrats and Republicans to avoid an unprecedented default.

Crude oil investors are now focused on the outcome of the OPEC+ meeting on 4 June as speculations about another round of output cuts continue.

Downward pressure:

Commercial US crude inventories gained by 4.49 million bbls on the week, the EIA’s latest figures showed yesterday. The EIA crude stock build fell short of the 5.2 million-bbl build estimated for the week ending 26 May by the API. And both builds ran counter to market analyst projections of a 1.2 million-bbl draw, according to Trading Economics.

China released weaker-than-expected manufacturing and services data for May on Wednesday, provoking the market to worry about a lag in oil demand.

Chinese economic rebound has stalled, and global manufacturing activity is struggling, said OANDA’s market analyst Craig Erlam. “Germany is in recession and the US may be headed for one. The questions now are will OPEC+ see it that way and could Russia be convinced to cut again? If not, Brent crude may well test those recent lows more forcefully,” he added.

By Debarati Bhattacharjee and Aparupa Mazumder

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