Bunker fuel benchmarks have moved up, and deliveries have been suspended by wind in Zona Comun.

IMAGE: A group of LPG tankers in port along the ship channel in Houston, Texas. Getty Images

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

• VLSFO prices up in Zona Comun ($12/mt), Balboa ($10/mt), Los Angeles ($7/mt), New York ($6/mt) and Houston ($3/mt)
  
• LSMGO prices up in Zona Comun ($38/mt), New York ($14/mt), Balboa ($12/mt), Los Angeles ($7/mt) and Houston ($6/mt)
• HSFO prices up in Balboa ($12/mt), Houston ($11/mt) and New York ($4/mt), and down in Los Angeles ($3/mt)

Los Angeles's HSFO benchmark has defied the general market direction and fallen in the past day. The port's VLSFO price has increased to widen its Hi5 spread to $124/mt.

All three fuel grades can be delivered with lead times of 7-8 days in Los Angeles.

New York's HSFO price has increased after a higher-priced 150-500 mt stem was fixed at $489/mt, putting upward pressure on the benchmark.

HSFO supply is running tight at the port, and the shortest lead time for HSFO is over seven days this week, a source noted.

New York's LSMGO price has moved up by $14/mt, after another higher-priced 50-150 mt LSMGO stem was fixed at $774/mt, putting upward pressure on the benchmark.

In Argentina's Zona Comun, VLSFO can be delivered by barge, and lead times have increased from 5-6 days to 7-8 days amid rough weather conditions.

The anchorage location is currently facing high wind gusts, and bunker deliveries have been suspended as winds have exceeded 20 knots.

Brent

The front-month ICE Brent contract has gained $0.58/bbl on the day, to trade at $68.67/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Oil has found some support after the US Energy Information Administration (EIA) reported a surprise draw in US crude oil stocks.

Commercial US crude oil inventories have declined by 3.9 million bbls to touch 422 million bbls for the week ending 11 July, according to data from the EIA.

The drop in oil stocks was “more than expected,” according to ANZ’s senior commodity strategist Daniel Hynes.

A decline in crude stockpiles typically indicates stronger demand and can push Brent's price higher.

Downward pressure:

Brent crude’s price has declined for a third straight session as investors continue to grow wary of a potential supply surplus later this year.

Total crude oil production by OPEC+ members averaged 41.56 million b/d last month, about 349,000 b/d higher than in May.

Oil production by OPEC+’s de-facto leader Saudi Arabia, increased by 173,000 b/d on the month to 9.36 million b/d in June. Production in the UAE increased by 83,000 b/d to about 3.1 million b/d last month.

Besides, the US EIA expects global oil production to rise by 1.8 million b/d this year, before increasing by another 1.1 million b/d in 2026.

“The planned increases to OPEC+ production combined with strong supply growth outside of OPEC+ continue to drive strong growth in global liquid fuels production in our forecast,” the EIA said earlier.

By Gautamee Hazarika and Aparupa Mazumder

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