Bunker benchmarks across key Americas ports have largely tracked Brent up, and weather delays are expected in Trinidad and Tobago.

IMAGE: Tankers docked at an American oil refinery in Texas City, Texas. Getty Images

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

• VLSFO prices up in Zona Comun ($18/mt), Balboa and Houston ($8/mt), New York and Los Angeles ($6/mt)
• LSMGO prices up in Houston ($13/mt), Balboa ($12/mt), New York and Los Angeles ($8/mt)
• HSFO prices up in New York, Los Angeles ($5/mt) and Houston ($3/mt), and down in Balboa ($7/mt)

The VLSFO price gap between Houston and New York has narrowed significantly over the past three months. In late March, New York’s VLSFO was priced at a $31/mt premium over Houston. Since mid-June, the price gap has been closed.

Los Angeles has recorded the highest HSFO price jump. Its HSFO is currently at a premium of $39/mt over Houston, and at a small discount of $4/mt to New York.

Supply remains steady in the West Coast port, with suppliers recommending lead times of around seven days to avoid spot premiums.

The hurricane season has started and will remain in effect until November.

In Trinidad and Tobago, possible disruptions are expected from today and will continue through Monday next week with high wind gusts and rough sea conditions.

Bunker operations are expected to be delayed, and bunker vessels are assessing whether deliveries can take place on a case-by-case basis, a source informs.

Brent

The front-month ICE Brent contract has gained $0.82/bbl on the day, to trade at $77.65/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has moved higher as hostilities between Israel and Iran have intensified, with both sides continuing to exchange fire.

Overnight, Israel struck two key Iranian nuclear sites, while Iranian drones hit a hospital in southern Israel, Reuters reports. Oil market participants are on high alert amid heightened speculations that Washington could intervene in the war.

“The market is being held in suspense over US President Donald Trump’s next move on the Israel-Iran conflict, more specifically whether he would authorise a direct US attack on the Islamic Republic,” Vanda Insights’ founder and analyst Vandana Hari notes.

On the demand side, oil got a boost after the US Energy Information Administration (EIA) reported a massive 11.5 million-bbl draw of commercial US crude oil inventories for the week ending 13 June.

Following the EIA report, ANZ Bank’s senior commodity strategist Daniel Hynes remarked that global oil demand “looks robust.” A decline in US crude stockpiles generally signals stronger demand and can support Brent.

Downward pressure:

Brent has had some downward pressure from a steady rise in OPEC+ production in recent months.

According to the group’s latest oil market report, total crude output from OPEC+ members averaged 41.23 million b/d in May, an increase of 180,000 b/d from April.

Saudi Arabia, the group’s de facto leader, boosted production by 177,000 b/d to reach 9.18 million b/d in May.

Eight members of the group will collectively raise their output by another 411,000 b/d in July, marking the fourth consecutive month of consistent supply increases.

By Gautamee Hazarika and Aparupa Mazumder

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