Fuel price benchmarks have mostly moved in the upward direction, and the West Coast market has seen improved demand.

IMAGE: Aerial view of Los Angeles and Long Beach ports. Getty Images.

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

• VLSFO prices up in Zona Comun and Houston ($8/mt), Balboa ($7/mt), Los Angeles ($4/mt) and New York ($3/mt)
• LSMGO prices up in Zona Comun ($16/mt), New York ($9/mt), Houston ($8/mt), Los Angeles ($6/mt), and down in Balboa ($18/mt)
• HSFO prices up in Houston and New York ($2/mt), and down in Balboa ($14/mt) and Los Angeles ($1/mt)

Balboa's HSFO and LSMGO price benchmarks have defied the general market direction and have declined by $14/mt and $18/mt, respectively, in the latest session.

Two lower-priced 150–500 mt and 500–1500 mt HSFO stems fixed today at $478/mt and $488/mt put downward pressure on the benchmark.

Similarly, two more lower-priced 50–150 mt and 500–1500 mt LSMGO stems fixed at the port today at $745/mt and $754/mt put downward pressure on the benchmark.

All other fuel benchmarks have mostly tracked Brent's upward movement.

The West Coast has seen a recovery in bunker demand, and the port is experiencing healthy bookings this week, a source said.

The number of scheduled vessels is also expected to rise from 23 to 25 in the upcoming week, according to the Port of Los Angeles.

All three fuel grades are available for prompt delivery, with suppliers recommending lead times of around seven days to just over a week.

Brent

The front-month ICE Brent contract has gained $0.98/bbl on the day, to trade at $69.17/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent’s price has moved higher on the back of demand-side optimism.

Commercial US crude oil inventories have declined by 3.2 million bbls to touch 419 million bbls for the week ending 18 July, according to data from the US Energy Information Administration (EIA).

A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

“US EIA report showing a weekly slump of 3.2 million barrels in crude inventories helped erase earlier intraday losses,” VANDA Insights’ noted Vandana Hari.

Besides, oil gained amid optimism over the ongoing US-EU trade talks that could boost oil demand growth.

“News emerged that the two sides were working towards a deal that would set a 15% tariff for most goods,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Downward pressure:

Rising output from the OPEC+ coalition has fuelled concerns of an impending oil surplus later this year, analysts say, pressuring market sentiment. This news has put downward pressure on Brent crude’s price in the recent days.

The Saudi Arabia-led alliance’s crude production averaged 41.56 million b/d last month, marking an increase of 349,000 b/d from May.

Meanwhile, eight members of the group have agreed to collectively increase their supply by 548,000 b/d in August, accelerating the group’s plan to boost crude production.

The planned production increase next month is four times higher than their original plan to unwind output cuts by 137,000 b/d each month between April 2025 and September 2026.

By Gautamee Hazarika and Aparupa Mazumder

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