Bunker fuel prices have moved in mixed directions and deliveries have been suspended in Argentina's Zona Comun due to rough weather conditions.

IMAGE: Aerial view of Port Newark. Getty Images

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

• VLSFO prices up in New York ($9/mt), and down in Zona Comun ($17/mt), Balboa ($14/mt), Houston ($10/mt) and Los Angeles ($1/mt)
• LSMGO prices up in Houston ($15/mt), New York ($11/mt), Balboa ($4/mt) and Los Angeles ($2/mt)
• HSFO prices down in Houston, New York, Balboa ($5/mt) and Los Angeles ($4/mt)

Houston’s LSMGO price has recorded the highest increase in the past session and is currently trading at par with New York at $770/mt.

This marks a shift from the $40/mt premium New York held over Houston three months ago.

Bunker demand in Houston has held steady this week. HSFO and VLSFO are readily available at the port, with suppliers advising lead times of 5–7 days. LSMGO is available with slightly shorter lead times of 3–5 days.

Bunker supply remains steady in New York, with lead times of 3–5 days for VLSFO and LSMGO, and 5–7 days for HSFO.

Zona Comun has recorded the sharpest drop among VLSFO prices. Availability remains decent at the anchorage, with lead times of under a week.

However, bunkering operations have currently been suspended due to strong wind gusts exceeding 20 knots. "Prolonged delays are expected starting 22 June," a source has said.

Brent

The front-month ICE Brent contract has lost $1.09/bbl on the day, to trade at $76.56/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Oil market participants remain on edge as the Israel-Iran conflict has entered its second week, with both countries continuing to exchange airstrikes on critical infrastructures.

Israel has struck more of Iran’s nuclear sites and warned its attacks could bring down the Islamic Republic’s government, according to media reports. The news has supported Brent crude’s upward move.

“Satellite images also show that Iran is racing to get its oil out, filling storage tanks and sending as much onto the global market as it can,” ANZ Bank’s senior commodity analyst Daniel Hynes remarked.

Market analysts fear that Iran may retaliate by disrupting oil flows through critical chokepoints including the Strait of Hormuz and the Bab al-Mandab Strait in the Red Sea.

“This could trigger action by Israel’s allies, including stricter sanctions on Iran. Energy export infrastructure in Iran and other regional states could be targeted,” Hynes added.

Downward pressure:

US President Donald Trump said he would take up to two weeks to decide on any potential US military action against Iran, US press secretary Karoline Leavitt said yesterday.

There is a “substantial chance” of negotiations with Tehran, Leavitt quoted Trump as saying. This news has eased some supply concerns in the market, as it has re-opened window for a US-Iran nuclear deal.

This news has capped some of Brent’s price gains, “reducing speculation that the US is planning to imminently join Israel in attacking Iran’s nuclear facilities,” Hynes added.

By Gautamee Hazarika and Aparupa Mazumder

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