Bunker fuel prices have moved upwards, and bunkering operations in GOLA are delayed due to rough sea conditions.

IMAGE: Aerial view of the New Jersey commercial port with docks and containers. Getty Images.

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

• VLSFO prices up in New York ($12/mt), Balboa ($8/mt), Houston ($5/mt) and Zona Comun ($4/mt)
• LSMGO prices up in New York ($16/mt), Balboa ($13/mt) and Houston ($7/mt)
• HSFO prices up in New York ($12/mt) and Balboa ($2/mt), and unchanged in Houston

New York has recorded the highest price increase across all grades in the past session, with its LSMGO price having gone up the most, by $16/mt. The grade is currently trading at a $45/mt premium to Houston, up from $21/mt in early February.

Bunker fuel demand at the port has remained largely unchanged over the past week, and availability remains good with lead times between 5-7 days, a source said.

Balboa’s VLSFO price has increased more than its HSFO, widening the port’s Hi5 spread further to $61/mt.

HSFO availability has improved in Balboa after a recent resupply of the grade, a local bunker supplier said. Availability currently remains steady across all fuel grades, with recommended lead times of roughly 4 days.

The hurricane season has caused frequent disruptions around Bolivar Road and the Galveston Offshore Lightering Area (GOLA). Operations are currently ongoing, but delays are expected due to elevated sea conditions until 5 July.

Brent

The front-month ICE Brent contract has gained $0.39/bbl on the day, to trade at $67.67/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has moved higher as lingering geopolitical risks continue to influence market sentiment.

Last week, Iran halted access to the International Atomic Energy Agency (IAEA) for inspections. Iranian nuclear-safety regulators have also stopped taking calls from the UN watchdog, Bloomberg reports.

“The blackout raises the spectre that Iran is using silence as a way to obscure international understanding of the status of its nuclear program,” remarked ANZ Bank senior commodity strategist Daniel Hynes.

The news has prompted market speculation of a potential cold war-like standoff, with the US possibly intensifying oil sanctions on Tehran.

“President Trump said the US will be there unless Iran backs away from its nuclear program,” Hynes added.

Downward pressure:

Brent’s gains have been capped after the American Petroleum Institute (API) reported a surprise build in commercial US crude stocks.

US crude oil inventories rose by 680,000 bbls in the week ending 27 June, according to the API. Market analysts expected a draw of 2.26 million bbls.

The data was “bearish on balance with a modest build in crude,” said Vanda Insights founder Vandana Hari.

An increase in US crude stockpiles can signal weaker demand and can dampen Brent's price.

The closely followed official data from the US Energy Information Administration (EIA) is due for release later today.

By Gautamee Hazarika and Aparupa Mazumder

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