Most bunker prices have followed Brent down in key Americas ports, while recent action in Los Angeles has lifted its LSMGO benchmark against the market direction.

IMAGE: The San Pedro Bay Port Complex, US. Port of Los Angeles

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

• VLSFO prices down in New York ($13/mt), Houston ($12/mt), Balboa ($9/mt) and Zona Comun ($1/mt), and steady in Los Angeles
• LSMGO prices up in Los Angeles ($7/mt) and Zona Comun ($3/mt), and down in Houston ($12/mt), New York ($6/mt) and Balboa ($5/mt)
• HSFO prices down in Houston, New York, Los Angeles ($5/mt) and Balboa ($2/mt)

Bunker trading activity is muted in the US market because of the 4th July holiday.

Los Angeles’ LSMGO price has defied the general market direction by gaining slightly on the day. A 150-500 mt LSMGO stem has been fixed for $806/mt in the port with a 3-7-day lead time and pulled the benchmark lower. Another supplier has offered the grade at a higher $820/mt.

The earliest delivery date for LSMGO is four days with one supplier in Los Angeles and Long Beach.

VLSFO has been offered in a wide price range of $569-592/mt in both ports.

150-500 mt VLSFO stems have been fixed in Houston at $505-517/mt in the past day. The stem at the lower end of that range was with delivery in 3-7 day, while the stem at the high end was with a shorter 0-3day delivery time.

VLSFO and LSMGO deliveries within a week are available in Bolivar Roads with at least four suppliers. A supplier can deliver prompt in the Galveston Offshore Lightering Area (GOLA), pegging its earliest delivery date two days out.

VLSFO has been offered in New York for $531/mt and LSMGO for $755/mt, both pulling their respective benchmarks slightly lower. Deliveries at anchorage by New York can be delayed by high wind gusts forecast in waves until Monday.

Brent

The front-month ICE Brent contract has reversed course and lost $0.72/bbl in the past day, to trade at $68.18/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

The US has announced fresh sanctions on Iranian oil exports, once again reiterating the Trump administration’s stance on driving the OPEC nation’s oil and petroleum products flow to zero. This news has lent some support to Brent’s price today.

The sanctions include oil companies and Iran’s alleged shadow fleet vessels, which help to sanctioned crude oil exports produced in the oil-rich country.

“Crippling Iran’s oil industry, its top source of revenue, has been a key goal of the Trump administration’s 'maximum pressure' strategy,” said ANZ Bank senior commodity strategist Daniel Hynes.

The effectiveness of these sanctions has been questioned, as China continues to buy Iranian oil, Hynes added.

Downward pressure:

Trading activity is subdued today, as US markets are closed for the Independence Day holiday.

Brent’s price has edged lower after Iran reaffirmed its commitment to the nuclear non-proliferation treaty, Reuters reports.

“Tensions surrounding the Iran nuclear issue appeared to ease,” remarked VANDA Insights’ Vandana Hari.

Tehran’s commitment to nuclear non-proliferation comes as it prepares to restart nuclear talks with Washington, Axios reports. US Middle East envoy, Steven Witkoff, plans to meet with Iran’s foreign minister Abbas Araghchi in Oslo next week, the report adds.

“Crude oil prices fell amid reports of US-Iran nuclear talks,” Hynes said.

By Erik Hoffmann and Aparupa Mazumder

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