Bunker fuel prices have moved in mixed directions, and New York faces potential delivery delays over the weekend due to strong wind gusts.

IMAGE: Aerial view of the Los Angeles Harbor in California, USA. Getty Images

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

• VLSFO prices up in Zona Comun ($4/mt) and Los Angeles ($2/mt), and down in Houston ($12/mt), New York ($8/mt) and Balboa ($2/mt)
• LSMGO prices up in Los Angeles ($1/mt), and down in Balboa ($23/mt), New York ($3/mt) and Houston ($1/mt)
• HSFO prices up in Los Angeles ($1/mt), unchanged in Houston and New York, and down in Balboa ($22/mt)

Houston’s HSFO price has remained unchanged for a second consecutive day this week. It is currently trading at a premium of $23/mt over Bolivar Roads and at discounts of $30/mt to New Orleans and $36/mt to Beaumont.

New York’s VLSFO price has dropped by $8/mt, while its HSFO price has remained unchanged, bringing the port's Hi5 spread down to $31/mt.

The port is forecast with high wind gusts and suppliers could face bunker disruptions and delays from today until Sunday, a source said.

Balboa’s LSMGO price has recorded the sharpest drop in the past session. Two lower-priced LSMGO stems of 0–50 mt and another of 150–500 mt have been fixed in the port at $687/mt and $654/mt, respectively, putting downward pressure on the benchmark.

Deliveries are made on a first-come, first-served basis in Balboa, with priority being given to vessels that have confirmed transit schedules through the Panama Canal.

Brent

The front-month ICE Brent contract has lost $0.1/bbl on the day, to trade at $65.59/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has gained some support following reports of fresh talks between US President Donald Trump and Chinese counterpart Xi Jinping.

The news has eased some economic concerns, supporting oil demand growth sentiment in the world’s two top oil consuming nations, analysts said. Both countries have resumed trade talks, Reuters reports.

Brent has found support “from optimism fuelled by a phone call between Presidents Donald Trump and Xi Jinping,” VANDA Insights’ founder and analyst Vandana Hari said.

“The two leaders agreed to resume trade negotiations, prompting relief after a recent escalation in tensions,” she added.

Downward pressure:

The prospect of further OPEC+ supply hikes continues to dent oil market sentiment. 

Last week, eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to collectively increase their supply by 411,000 b/d in July, compared to June’s production levels.

The coalition’s leader Saudi Arabia wants to increase oil supply to regain market share, according to media reports.

“We suspect OPEC is taking the opportunity of stronger seasonal demand and a lack of response from non-OPEC producers to regain market share,” ANZ Bank’s senior commodity strategist Daniel Hynes said. “What is not clear is whether that will extend into the second half of the year,” he added.

By Gautamee Hazarika and Aparupa Mazumder

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