Bunker benchmarks in Americas ports have taken mixed directions, and bad weather could disrupt bunkering in St. Eustatius.

PHOTO: Industrial operations in the Port of Galveston. Getty Images

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

• VLSFO prices up in Zona Comun ($23/mt) and Houston ($1/mt), and down in Balboa ($4/mt) and New York ($3/mt)
• LSMGO prices up in Houston and New York ($7/mt), and Balboa ($1/mt)
• HSFO prices up in Houston ($5/mt), Balboa ($2/mt) and New York ($1/mt)

Zona Comun’s VLSFO price has gained more than other ports in the Americas in the past day. One 150-500 mt higher-priced VLSFO stem fixed at $618/mt for prompt supply has pushed the benchmark higher.

Meanwhile, Santos’ VLSFO price has gained by a modest $6/mt in the past day. This has flipped Zona Comun’s $15/mt VLSFO price discount to Santos' to a $6/mt premium now.

VLSFO and LSMGO availability is good in Argentina's Zona Comun anchorage. Most suppliers can supply both grades within five days as demand has been low this week.

Bunkering is proceeding normally in Zona Comun, but bad weather is forecast later today, which could make barge deliveries difficult there.

Bunker deliveries are expected to be disrupted in St. Eustatius in the Caribbean today due to strong wind gusts of up to 30 knots, which could delay deliveries until Saturday.

Brent

The front-month ICE Brent contract has inched $0.04/bbl higher on the day, to trade at $81.66/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Crude oil inventories in the US dropped by 3.9 million bbls in the week that ended 19 July, according to estimates from the American Petroleum Institute (API). The API's estimate of a crude stock drawdown has lent some support to Brent.

A draw in US crude stocks indicates oil demand growth and could push oil prices higher. The US trade body reported “sizeable across-the-board oil inventory draws,” VANDA Insights’ founder and analyst Vandana Hari said.

Oil supply risks from wildfires in Canada's Alberta province have continued to exert upward pressure on Brent’s price, according to market analysts. Oil producers, including Suncor Energy and Altair Energy, have halted production due to operational disruptions caused by wildfires, Bloomberg reported.

“While wildfires have already forced some producers to curtail production, these fires still threaten a large amount of supply,” two analysts from ING Bank said.

The oil market will closely monitor Saudi Arabia-led OPEC's upcoming meeting on 1 August, as the organisation is expected to discuss strategies to increase prices, according to reports.

Downward pressure:

A weak economic outlook in China has raised concerns about oil demand growth in the country. This has contributed to pull Brent's price lower, according to analysts.

China reported its “weakest economic growth in five quarters last week, putting a damper on the outlook [for oil], ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Economic activity in the world’s second-largest oil consumer declined in the second quarter. China's GDP growth dropped from 5.3% in the first quarter to 4.7% in the second quarter.

Ceasefire talks between Israel and Hamas have shown progress after Israeli Prime Minister Benjamin Netanyahu signaled that a deal could be cracked to end the nine-month-old conflict in the Gaza Strip.

Netanyahu is currently visiting Washington, where he will address the US Congress, the Associated Press (AP) reports. The US, along with Egypt and Qatar, are proactively endorsing a phase-out plan that would stop Israel’s military operations in Gaza and free the remaining Israeli hostages. This could ease concerns over supply disruptions in the Middle East.

“Brent crude fell… hitting its lowest levels in over a month due to renewed Israel-Hamas ceasefire talks and demand concerns,” analysts from Saxo Bank said.

By Debarati Bhattacharjee and Aparupa Mazumder

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