Bunker benchmarks across key ports in the Americas have largely tracked Brent’s upward movement, and deliveries have been suspended in Zona Comun.

IMAGE: Aerial view of oil tankers loading fuel at a refinery near Houston. Getty Images.

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

• VLSFO prices up in Los Angeles ($51/mt), New York ($46/mt), Houston ($41/mt), Balboa ($31/mt) and Zona Comun ($26/mt)
• LSMGO prices up in Los Angeles ($63/mt), New York ($61/mt), Houston ($53/mt) and Balboa ($47/mt)
• HSFO prices up in Balboa ($51/mt), Los Angeles ($43/mt), New York ($41/mt) and Houston ($32/mt)

Even though Los Angeles' LSMGO price recorded the highest gains in the past session, it is currently trading at discounts of $107/mt to Seattle and $139/mt to Vancouver. It is also trading at premiums of $24/mt to New York and $53/mt to Houston.

Both bunker fuel availability and demand at the Port of Los Angeles remain steady. Suppliers say they can deliver all the fuel grades in less than 7 days.

Balboa's VLSFO price has inched up after two higher-priced VLSFO stems of 50–150 mt and 500–1500 mt have been fixed at $516/mt and $513/mt, respectively, putting upward pressure on the benchmark.

Bunker deliveries have been suspended at Argentina’s Zona Comun due to rough weather conditions, according to a source. According to a trader, prompt VLSFO availability at the anchorage is good, with suggested lead times of 5–6 days. 

Brent

The front-month ICE Brent contract has gained $6.07/bbl on the day, to trade at $74.86/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has rallied over 7% following reports that Israel struck a major nuclear facility in Natanz, Iran earlier today.

Israel has targeted Iran’s nuclear facilities, ballistic missile factories and military personnel in the recent attack, the country’s military said.

“This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium for any potential supply disruptions,” ING Bank’s head of commodities strategy Warren Patterson remarked.

The news comes ahead of the sixth round of US-Iran talks in Oman later this week. The US has denied any involvement in these strikes.

“This follows threats from Iran that it will target US military bases in Iraq if a conflict breaks out,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

The risk to supply disruptions was partly offset by OPEC+ decision to ramp up production hikes.

Earlier this month, the oil producers’ group decided to collectively increase their supply by 411,000 b/d in July again – a move the coalition has stuck to for three months now. It’s leader Saudi Arabia wants to increase oil supply to regain market share, according to market analysts.

“Crude tanker loadings from OPEC nations rose 24% w/w last week to 2.28mb/d [2.28 million b/d], the highest weekly loadings since April 2023,” Hynes said citing data from global shipping association Baltic and International Maritime Council (BIMCO).

By Gautamee Hazarika and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online