Bunker fuel benchmarks have mostly moved in the upward direction, and high sea conditions could delay bunker operations in GOLA this week.

IMAGE: Container ships moored. Port of New York and New Jersey. Getty Images.

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

• VLSFO prices up in Houston ($20/mt), New York ($17/mt), Los Angeles ($11/mt), Zona Comun ($10/mt) and Balboa ($6/mt)
• LSMGO prices up in Balboa ($19/mt), Houston ($14/mt) and Los Angeles ($9/mt), and down in New York ($17/mt)
• HSFO prices up in Balboa ($18/mt), Los Angeles ($14/mt), New York ($13/mt), and Houston ($11/mt)

Houston’s VLSFO price has recorded the highest increase in the past session. Two VLSFO stems of 150–500 mt have been booked at the port at $475/mt and $479/mt.

Two 0–50 mt LSMGO stems have also been booked at the port at $633/mt and $637/mt.

VLSFO and LSMGO are available at Houston directly via pipe for prompt delivery, with recommended lead times of 3–5 days. HSFO is only available by barge and requires terminal approval and checks before a barge can be brought alongside, and lead times stand at 7–10 days, a source said.

New York’s LSMGO is the only price that has fallen among key ports. It is currently trading at discounts of $29/mt to Philadelphia, $93/mt to Baltimore, and $70/mt to Norfolk.

Possible disruptions are expected from Friday in the Galveston Offshore Lightering Area (GOLA) due to elevated sea conditions, which could delay bunkering operations.

With the end of the 90-day tariff pause between the US and other non-Chinese countries approaching in a month, uncertainty is growing over potential tariff reinstatements.

Cargo frontloading is slowing down, which could reduce overall trade volumes.

In terms of bunker demand, no price shocks have occurred yet, but if trade slows between July and August, bunker demand may weaken on the transpacific container lanes, another source said.

Brent

The front-month ICE Brent contract has gained $1.17/bbl on the day from Friday, to trade at $66.76/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Oil prices have gained momentum as the global oil market's focus has now shifted to US-China trade talks set to commence in London later today.

Last week, a phone call held between US President Donald Trump and Chinese counterpart Xi Jinping led to a “very positive conclusion,” according to media reports. The news has boosted oil demand growth sentiment in the two top oil consumers.

“The US President and the Chinese President agreed to continue trade discussions in order to address issues related to tariffs and rare earth minerals,” Price Futures Group’s senior market analyst Phil Flynn remarked. “It will more than likely would lead to a resumption of oil imports into China from the United States,” he added.

On the supply side, Canadian wildfires in recent weeks have caused operational hurdles for oil production, pushing Brent’s price higher. Canadian wildfires typically occur between May and September.

Downward pressure:

US drilling activity has continued to decline amid the broader weakness in oil prices.

The total number of rigs drilling for crude oil in the US declined by nine to 442 units last week, according to Baker Hughes.

Lower drilling activity can indicate a slowdown in oil demand, market analysts said. This week’s data marked the sixth consecutive week of decline, two analysts from ING Bank noted.

“In the US market, drilling activity continues to slow,” the analysts said, marking the “longest period of declines since mid-2023.”

By Gautamee Hazarika and Aparupa Mazumder

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