Bunker benchmarks across key Americas ports have tracked Brent’s upward movement, and deliveries have resumed in Zona Comun.

IMAGE: Aerial view of Port of Santos. Getty Images

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

• VLSFO prices up in Houston ($17/mt), Balboa and Zona Comun ($10/mt), New York ($9/mt) and Los Angeles ($5/mt)
• LSMGO prices up in Houston ($29/mt), Zona Comun ($19/mt), New York ($17/mt), Balboa ($16/mt) and Los Angeles ($11/mt)
• HSFO prices up in Houston ($15/mt), New York ($10/mt), Balboa ($9/mt) and Los Angeles ($7/mt)

Houston has recorded the highest price increases across all the fuel grades.

Bunker fuel demand has improved over the week in Houston, and availability is good across all three fuel grades at the port.

"We can offer HSFO at $428-429/mt and LSMGO at $681-695/mt, under a week. VLSFO availability also good," a bunker trader said.

The shortest time for HSFO and LSMGO in Houston is 2-3 days.

Balboa's Hi5 spread has widened to $50/mt, as the port's HSFO benchmark increased by $9/mt while its VLSFO by $10/mt.

Suppliers in Balboa and Cristobal can offer VLSFO and LSMGO with lead times of 5-7 days.

HSFO is currently available more readily and can be supplied with a shorter lead time.

In Argentina's Zona Comun, deliveries have resumed after being suspended on Thursday morning due to unsuitable weather conditions.

VLSFO can be delivered via barge at the anchorage, and lead times have increased from 5-6 days to 7-8 days caused by the rough weather.

Brent

The front-month ICE Brent contract has gained $1.53/bbl on the day, to trade at $70.20/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has moved higher due to oil supply-related concerns, snapping a three-day losing streak.

Several oilfields in Iraq’s semi-autonomous Kurdistan region halted production, following drone strikes that targeted infrastructures operated by various companies.

The attacks have reduced crude output from about 280,000 b/d to 140,000 b/d to 150,000 b/d, Reuters reported, citing two energy officials.

“Iraq has lost about 200kb/d [200,000 b/d] of production due to drone attacks on several fields in Kurdistan,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

Besides, Brent’s price gained after the European Union (EU) reached an agreement on the 18th sanctions package against Russia that was proposed last month. The measures aim at further crippling Moscow’s oil and energy revenues.

“Near-term oil fundamentals remain supportive, with the market set to remain fairly tight through this quarter,” two analysts from ING Bank noted.

Downward pressure:

Brent’s price gains were capped by some concerns of a supply glut in the second half of this year as OPEC+ members continue to hike production levels every month.

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.

“OPEC+ output is rising and Saudi Arabia increased flows to 6.43mb/d [6.43 million b/d] in H1 July,” Hynes added.

By Gautamee Hazarika and Aparupa Mazumder

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