Bunker fuel benchmarks have moved mostly downwards, and demand has picked up in Houston this week.

IMAGE: Aerial view of the Vincent Thomas Bridge across the Los Angeles Harbor. Getty Images

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

• VLSFO prices up in Zona Comun ($38/mt), and down in Houston ($15/mt), New York, Los Angeles ($8/mt) and Balboa ($7/mt)
• LSMGO prices down in Balboa ($12/mt), New York, Los Angeles ($11/mt) and Houston ($9/mt)
• HSFO prices down in Balboa ($8/mt), New York, Los Angeles ($7/mt) and Houston ($4/mt)

Houston’s VLSFO price has declined in the past session, after a lower-priced 500–1500 mt stem was fixed at $478/mt today, putting downward pressure on the benchmark.

The port’s LSMGO price dropped as well, after a lower priced 50–150 mt stem was fixed at $658/mt, putting downward pressure.

"Demand has picked up at the port of Houston following the recent crude oil price drop," a source said.

Panama has not been significantly impacted by the recent price drop, and bunker fuel enquiries have remained low at both Balboa and Cristobal.

Balboa’s HSFO price dropped by $1/mt more than VLSFO, bringing the current Hi5 spread to $27/mt.

Zona Comun’s VLSFO price has gained while other key ports have recorded a decline in prices. VLSFO availability at the anchorage is decent, with five barges currently operating.

Deliveries are currently suspended due to high wind gusts and are expected to resume this afternoon.

"High wind gusts will return between 28–30 June. Prolonged delays are expected thereafter," a source said.

Brent

The front-month ICE Brent contract has lost $1.11/bbl on the day, to trade at $67.84/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent futures have gained some support following the American Petroleum Institute's (API) weekly oil inventory report.

US crude oil inventories declined by 4.28 million bbls in the week ending 20 June, according to API estimates.

The decline in crude stocks surprised market analysts, who expected a much smaller draw of 600,000 bbls. The numbers were “significantly above the anticipated decrease of around 0.6 million barrels,” two analysts from ING Bank noted.

A decrease in US crude stockpiles generally signals stronger demand and can provide some support to Brent's price.

Market participants now await the US Energy Information Administration’s (EIA) crude inventory report, scheduled for release later today.

Downward pressure:

Brent’s price has plunged as some geopolitical risk premiums have been priced out of the oil market, according to analysts.

US President Donald Trump said on Truth Social yesterday that China can continue purchasing oil from Iran, following the successful implementation of a ceasefire between Israel and Iran, according to a Reuters report. Meanwhile, the White House clarified that the statement did not indicate a relaxation of US sanctions against Iran.

“With the Israel-Iran ceasefire holding steady, oil’s risk bid collapsed,” SPI Asset Management managing partner Stephen Innes said.

Given that the tensions between Israel and Iran remain contained in the upcoming weeks, market attention is expected to shift back to the anticipated supply surplus later this year.

“The latest slump in prices brings the market back to where it was before Israel attacked Iran on 12 June,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.  

“OPEC is scheduled to ramp up output in July faster than originally agreed,” he added. The group is due to meet on 6 July to discuss a further supply boost in August.

By Gautamee Hazarika and Aparupa Mazumder

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