Most fuel prices have moved in the upward direction, and bunker operations have been suspended in the GOLA region of Gulf of Mexico.

IMAGE: Oil refinery with a view to downtown Houston. Getty Images

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

• VLSFO prices up in Balboa ($9/mt), Zona Comun ($8/mt), Houston ($7/mt), unchanged in New York and down in Los Angeles ($3/mt)
• LSMGO prices up in Balboa ($12/mt), Houston ($9/mt), and down in New York and Los Angeles ($1/mt)
• HSFO prices up in Houston ($7/mt) and Balboa ($6/mt), and down in New York ($3/mt) and Los Angeles ($1/mt)

Houston has recorded an increase in prices across all fuel grades. Bunker demand in Houston remains modest across all the grades.

Both VLSFO and LSMGO are readily available, with recommended lead times of 3–5 days. HSFO is also stocked, though prompt deliveries have been facing delays due to barge congestion, with lead times extending to at least 7 days or more.

New York’s VLSFO price has remained steady, while HSFO has dipped by $3/mt, bringing the port’s Hi5 spread to $52/mt.

New York is currently trading VLSFO at a narrow discount of $5/mt to Houston, down from $19/mt at the start of the year.

In the Galveston Offshore Lightering Area (GOLA), deliveries have been suspended due to high seas and are expected to remain so until the afternoon of 13 June.

Bunker operations continue on a first-come, first-served basis where weather conditions permit, a source said.

Brent

The front-month ICE Brent contract has gained $0.71/bbl on the day, to trade at $68.79/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has reversed the previous day’s losses to gain over $2/bbl as geopolitical tensions in the Middle East resurfaced.

The US government has ordered a partial evacuation of its embassy staff in Iraq due to rising security concerns in the Middle East, Reuters reports.

Besides, the United Kingdom Maritime Trade Operations (UKMTO) has advised caution to commercial vessels passing through the Persian Gulf, the Gulf of Oman and Straits of Hormuz. 

Both news come shortly after Iran threatened to strike US bases in the region if nuclear talks between the two countries fail, according to another Reuters report. US President Donald Trump has repeatedly threatened Iran with attacks if US-Iran nuclear talks don’t yield any positive outcome.

“Expectations of a new US-Iran nuclear [deal] are slowly evaporating. President Trump said he’s less confident about whether he can convince Tehran to agree on shutting down its nuclear program,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Downward pressure:

Rising OPEC+ crude oil output in recent months has put some downward pressure on Brent’s price.

The coalition agreed to collectively increase their supply by 411,000 b/d in July, compared to June’s production levels. It’s leader Saudi Arabia wants to increase oil supply to regain market share, according to market analysts.

With the latest round of output hike, OPEC+ will have increased supply by about 1.38 million b/d in the first four months of the phase out plan, "or 64% of the 2.2mb/d [2.2 million b/d] in voluntary production cuts,” Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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