Fuel price benchmarks have mostly increased, and rough weather conditions could disrupt bunker operations in the US Gulf this week.

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

• VLSFO prices up in Houston ($7/mt), New York ($4/mt), Balboa ($3/mt) and Los Angeles ($2/mt), and down in Zona Comun ($1/mt)
• LSMGO prices up in New York and Zona Comun ($6/mt), Los Angeles and Balboa ($5/mt), and down in Houston ($18/mt)
• HSFO prices up in New York ($3/mt) and Los Angeles ($2/mt), and down in Houston ($3/mt) and Balboa ($1/mt)

Houston’s LSMGO price benchmark has recorded the sharpest decline, falling by $18/mt, while all other key ports have recorded price increases for the grade.

The port’s LSMGO benchmark is now at a discount of $82/mt to New York, reversing the $7/mt premium it held roughly two months ago on 20 June.

The hurricane season is currently at its most active stage, and heavy thunderstorms and high wind gusts are expected over the northern US Gulf coast, a source said.

Bunkering operations in the region are likely to face disruptions and minor delays until Saturday.

Zona Comun’s LSMGO price has increased, while the port’s VLSFO price has declined by $1/mt in the past session.

Availability for both fuel grades is good at the anchorage, and weather conditions remain favourable. Suppliers are recommending lead times of 5–7 days for deliveries.

There are currently five barges active at the anchorage.

Brent

The front-month ICE Brent contract has lost $0.16/bbl on the day, to trade at $66.14/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

The latest economic data coming out of the US has provided some upward thrust to Brent’s price today.

The US inflation rate, based on the Consumer Price Index for all urban consumers (CPI-U), increased by 0.2% in July, after rising by 0.3% in June. On an annual basis, the US CPI advanced 2.7% last month.

Market analysts say the CPI figures have strengthened expectations that the US Federal Reserve (Fed) will move to cut interest rates at its September meeting.

“US consumer price index data yesterday [is] buttressing the view that the Federal Reserve will likely cut interest rates at its September meeting,” remarked two analysts from ING Bank.

A rate cut in the US could spur demand growth and make commodities such as oil cheaper for non-dollar holders.

Downward pressure:

Brent’s price has continued to move lower, ahead of Friday’s highly anticipated meeting between US President Donald Trump and Russian counterpart Vladimir Putin.

“The outcome [of Friday’s meeting] could remove some of the sanction risk hanging over the market,” ING Bank’s analysts note.

The two leaders are set to meet in Alaska to discuss potential pathways toward a peace deal in the Russia-Ukraine conflict, now entering its third year.

“Market consensus veered towards expectations that Friday’s summit between US President Donald Trump and Russian President Vladimir Putin will yield a Ukraine ceasefire,” according to VANDA Insights’ founder Vandana Hair.

By Gautamee Hazarika and Aparupa Mazumder

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