Bunker fuel prices have moved in mixed directions, and deliveries have resumed in Zona Comun after a three-day suspension.

IMAGE: View of the entire Port of Los Angeles, US. Port of Los Angeles

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

• VLSFO prices up in Balboa ($21/mt) and Los Angeles ($1/mt), unchanged in Houston and New York, and down in Zona Comun ($6/mt)
• LSMGO prices up in Balboa ($13/mt) and Los Angeles ($1/mt), unchanged in Houston, and down in New York ($15/mt)
• HSFO prices up in Balboa ($32/mt), Los Angeles ($22/mt) and Houston ($6/mt), and unchanged in New York

Balboa has recorded the highest price increases across all fuel grades in the latest session. Its HSFO price has risen by more than its VLSFO, narrowing the port’s Hi5 spread to just $16/mt.

All fuel grades are available at the port within recommended lead times of 4-5 days.

Los Angeles has also seen price increases across all three fuel grades. Bunker demand has held steady in the port, with 25 vessel calls scheduled this week. “West Coast hasn't been the busiest, but safe to say steady,” a source said.

Los Angeles' HSFO price has increased and is currently at premiums of $40/mt over New York and $61/mt over Houston.

In Zona Comun, deliveries have resumed after being suspended for the last three days. VLSFO availability is good at the anchorage, and recommended lead times stand at 5–6 days.

There are currently five barges in operation at the anchorage.

Bunker disruptions are expected again over the weekend, which could delay bunker operations, a source said.

Brent

The front-month ICE Brent contract has lost $0.05/bbl on the day, to trade at $67.79/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price regained some value after the US Energy Information Administration (EIA) released crude stocks data.

Commercial US crude oil inventories plunged 5.8 million bbls lower to touch 415 million bbls for the week ending 20 June, according to data from the EIA.

The EIA report was “bullish”, Vanda Insights’ founder and analyst Vandana Hari remarked.

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

“US government [EIA] data showed the US driving season is in full swing after a slow start,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent has continued to decline following the US-brokered ceasefire deal between Israel and Iran, which came into effect on Monday.

The news has wiped out the Mideast geopolitical risk premium from the market, according to analysts. It has “sent oil prices tumbling this week, as traders and investors bet the bombing campaigns are over,” analysts from ING Bank noted.

US President Donald Trump is confident that the ceasefire will remain in place, he told reporters at the recent NATO summit in the Netherlands.

Oil is down due to “lingering concerns over the stability of the Israel-Iran truce,” Hari said.

By Gautamee Hazarika and Aparupa Mazumder

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