Bunker benchmarks have largely tracked Brent down, and deliveries in GOLA could be hit by a tropical storm 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 down in New York ($16/mt), Houston ($10/mt), Los Angeles ($9/mt), Zona Comun ($7/mt) and Balboa ($5/mt)
• LSMGO prices down in Zona Comun ($19/mt), Balboa ($16/mt), Houston ($15/mt), Los Angeles ($13/mt) and New York ($3/mt)
• HSFO prices down in Houston ($16/mt), Los Angeles ($7/mt), New York ($5/mt) and Balboa ($1/mt)

Zona Comun’s LSMGO price has made the sharpest drop for a second day in a row. The price benchmark is at a small premium of $10/mt to Bahia Blanca and is almost at par with nearby Buenos Aires in Argentina.

However, Zona Comun's LSMGO price remains at huge $250-253/mt premiums over the Brazilian ports of Santos and Rio Grande.

The hurricane season is currently ongoing and will run through the end of November.

Bunker deliveries in the Galveston Offshore Lightering Area (GOLA) could face disruptions from a tropical storm system that may develop in the area.

In nearby Corpus Christi, the fastest delivery time for VLSFO and LSMGO is currently 1-2 days.

New York’s HSFO price has decreased by $5/mt in the past session. The grade is slightly tight at the port and currently requires around seven days for delivery, a source has said.

VLSFO and LSMGO can be delivered within the recommended lead times of 4–5 days in New York.

Brent

The front-month ICE Brent contract has lost $1.03/bbl on the day, to trade at $68.09/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

In its monthly oil market report, OPEC has maintained its supply and demand projections for this year, providing some support to Brent’s price today.

The Vienna-headquartered group expects global oil demand growth to hit 1.3 million b/d for both 2025 and 2026.

Global oil consumption is expected to average 105.1 million b/d this year, largely unchanged from OPEC's estimate a month ago.

Downward pressure:

US crude oil inventories rose by 19.1 million bbls in the week ending 11 July, according to estimates from the American Petroleum Institute (API).

The latest data has surprised oil market analysts, who had previously projected a 2 million-bbl draw. An increase in US crude stockpiles generally signals weaker demand and can drag Brent's price lower.

Besides, US President Donald Trump’s approach to securing a ceasefire between Russia and Ukraine fell short of directly targeting Russia's energy infrastructure.

This news has eased some supply disruption concerns and put further downward pressure on Brent.

“No immediate action from the US against Russia following President Trump’s 'major statement' means that the focus returns to the expected oil surplus later in the year,” ING Bank analysts said.

By Gautamee Hazarika and Aparupa Mazumder

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