Bunker benchmarks have mostly moved upwards, and deliveries in New York can be delayed due to high wind gusts.

IMAGE: View of the Houston Ship Channel with barges. Getty Images

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

• VLSFO prices up in Los Angeles ($50/mt), New York ($36/mt), Zona Comun ($8/mt), Balboa ($5/mt) and Houston ($2/mt)
• LSMGO prices up in New York ($57/mt), Houston ($9/mt), Balboa ($6/mt) and Los Angeles ($3/mt)
• HSFO prices up in New York ($18/mt), Houston ($5/mt), Los Angeles ($4/mt) and down in Balboa ($5/mt)

Los Angeles' VLSFO price has jumped by the highest margin, rising $50/mt. It is now trading at premiums of $31/mt to New York and $89/mt to Houston.

Availability at the port is good. Lead times of around less than a week to around 7 days is recommended by suppliers to avoid prompt pricing.

According to the Port of Los Angeles, inbound container volumes have recorded an uptick and are set to remain strong over the next two weeks.

This week, 134,278 TEUs are expected to arrive until Saturday, which is a 20.05% jump from the previous week, and a 67.61% increase on a year-on-year basis.

New York's LSMGO price has also seen a significant jump in the past session. It is currently trading at a $53/mt premium to Houston, up from $21/mt in late February.

LSMGO and VLSFO are the primary grades being bunkered at the port more frequently and are available for prompt delivery.

Suppliers recommend lead times of 3–5 days for these two grades.

New York is expected to face possible disruptions from high wind gusts until tomorrow. While there’s no reported backlog congestion, bunker deliveries could see some delays, a source said.

Brent

The front-month ICE Brent contract has gained $0.39/bbl on the day, to trade at $68.18/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Oil has rebounded from earlier losses amid signs of strengthening demand in the US.

Commercial US crude oil inventories have plunged by about 5.8 million bbls to touch 415 million bbls for the week ending 20 June, according to data from the US Energy Information Administration (EIA).

“The Energy Information Administration reported stunning numbers,” Price Futures Group’s senior market analyst Phil Flynn remarked.

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

Brent has gained additional support following news that Washington and Beijing have reached an agreement to expedite rare earth shipments to the US, Reuters reports. The news is “constructive for the [oil] market, particularly ahead of the reciprocal tariff deadline of 9 July,” ING Bank analysts said.

Downward pressure:

Brent’s price has come under pressure as the ceasefire agreement between Iran and Israel appears to hold, according to market analysts.

Besides, delegates from the US and Iran are set to resume talks next week in a renewed effort to reach an agreement on Tehran’s nuclear enrichment program.

“The oil market’s attention is shifting back to tariffs and other risks,” analysts from ING Bank noted.

Another key focus is OPEC+’s upcoming meeting on 6 July to decide August production levels. Market analysts expect the Saudi Arabia-led group to continue unwinding supply cuts by another 411,000 b/d in August – the same as July.

“These supply hikes should ensure that the oil market moves into a large surplus towards the end of the year,” ING Bank analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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