Bunker fuel benchmarks have tracked Brent's upward movement, and strong wind gusts are expected in New York.

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 up in Zona Comun ($18/mt), Houston ($16/mt), Balboa ($12/mt), New York ($7/mt) and Los Angeles ($5/mt)
• LSMGO prices up in Zona Comun ($32/mt), Balboa ($16/mt), Houston ($12/mt), New York ($9/mt) and Los Angeles ($5/mt)
  
• HSFO prices up in New York and Balboa ($16/mt), Houston ($7/mt) and Los Angeles ($6/mt)

New York's HSFO price benchmark jumped up by $16/mt and is currently at a $40/mt premium over Houston.

HSFO availability has improved at the East Coast port after some suppliers received fresh resupply last week. However, spot availability remains limited, a source told ENGINE.

Recommended lead times for all three fuel grades are 4–5 days.

Southwest winds are expected to increase to 10–15 knots, with occasional gusts of up to 20 knots later in the afternoon in the New York Harbour.

Bunker fuel availability is good in the Galveston Offshore Lightering Area (GOLA).

"Although there have been some weather disruptions, ops are underway at the anchorage. Suppliers have reported healthy bookings this week," a source said.

Both HSFO and LSMGO price benchmarks fell today after lower-priced stems were fixed for each grade.

A 500–1500 mt HSFO stem has been fixed at the anchorage today at $473/mt, which put downward pressure on its benchmark.

A 50–150 mt LSMGO stem has been fixed at $744/mt, which has weighed down its benchmark.

Suppliers can deliver HSFO and LSMGO within recommended lead times of 3–4 days.

Brent

The front-month ICE Brent contract has gained $2.35/bbl on the day, to trade at $72.76/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has surged as market participants shift focus from oversupply concerns to the risk of a potential supply crunch in the coming months.

Supply crunch concerns stem from US President Donald Trump’s recent remarks indicating he may shorten Russia’s deadline to end the Ukraine conflict from 50 days to just 10–12 days.

“Failing to reach a deal risks additional sanctions on Russia and secondary tariffs on countries importing its oil,” said two analysts from ING Bank.

The warning follows additional sanctions by the EU and the UK, targeting Russia’s energy and shipping sectors.

“Russia exports more than 7m b/d [7 million b/d] of crude oil and refined products. Thus, effective 100% secondary tariffs would lead to a dramatic shift in the oil market,” the two analysts added.

Downward pressure:

A build in US crude inventories has put some downward pressure on Brent futures.

US crude oil inventories rose by 1.54 million bbls in the week ending 25 July, according to estimates from the American Petroleum Institute (API).

A rise in US crude stocks can indicate lower demand for oil and weigh on Brent's price.

VANDA Insights’ founder Vandana Hari described the stocks data as “broadly stable.”

By Gautamee Hazarika and Aparupa Mazumder

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