Bunker fuel prices have moved in mixed directions, and vessels leaving Houston are being prioritised over those from Texas City.

IMAGE: Aerial view of Port Newark. Getty Images

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

• VLSFO prices up in Houston ($2/mt) and New York ($1/mt), and down in Balboa ($11/mt), Zona Comun ($3/mt) and Los Angeles ($1/mt)
• LSMGO prices up in Zona Comun ($3/mt), unchanged in New York and Los Angeles, and down in Balboa ($12/mt) and Houston ($4/mt)
• HSFO prices up in New York ($1/mt), and down in Balboa ($21/mt), Houston ($7/mt) and Los Angeles ($2/mt)

Balboa’s HSFO and LSMGO price benchmarks have moved against the broader market trend and recorded sharp declines in the past session. This has followed the booking of a lower-priced 500–1,500 mt HSFO stem at $476/mt, which has put downward pressure on the benchmark.

A lower-priced 150–500 mt LSMGO stem has been fixed at $744/mt, weighing down its benchmark.

HSFO and LSMGO can be delivered in 6–7 days in Balboa and Cristobal. HSFO is tight in Balboa.

Work is currently being carried out to widen parts of the Houston Ship Channel, but the channel is currently open.

"To manage marine traffic, vessels departing from Houston are given priority over those leaving Texas City when scheduled to transit at the same time," a source said.

Zona Comun’s LSMGO price has recorded the highest increase among the key ports, and is almost at par with the nearby bunkering spot of Bahia Blanca. VLSFO and LSMGO availability is normal in Zona Comun, with recommended lead times of 5–6 days.

Brent

The front-month ICE Brent contract has gained $0.67/bbl on the day, to trade at $70.41/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

The Donald Trump-led US government and the European Union (EU) reached a trade deal yesterday. This news has supported Brent futures as market participants weighed the broader implications of the agreement.

The deal imposes a 15% tariff on most EU goods, Reuters reports. It has helped avert a broader trade conflict between the two trade partners, which could have dampened the outlook for global oil demand, according to market analysts.

“A trade deal between the US and EU proved positive for sentiment this morning in the oil market,” said two analysts from ING Bank.

Oil prices have gained further support following recent comments by US President Donald Trump, suggesting a shortened deadline for Russia to resolve the Ukraine conflict.

Trump had previously threatened to impose 100% tariffs on countries trading with Russia. If imposed, the secondary tariffs could change the oil supply outlook for this year, according to market analysts.

“Trump’s comments reignited fears that Russia’s oil flows would be impacted,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

Brent’s price gains were partially capped amid expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will further boost supply in the upcoming months.

Market participants are awaiting the outcome of the OPEC+ meeting scheduled for 3 August, where the Saudi Arabia-led group is expected to discuss September production levels.

“Attention will likely turn to OPEC+ output policy”, ING Bank’s analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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