Americas Market Update 11 June

Fuel prices have moved in mixed directions, and bunker deliveries at GOLA have experienced delays due to overnight high swells.

MAGE: A vessel moving into Galveston Bay from the Gulf of Mexico. Getty Images.

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

• VLSFO prices up in Zona Comun ($35/mt), Houston ($9/mt), New York ($8/mt) and Balboa ($5/mt)
• LSMGO prices up in New York ($12/mt), Houston ($9/mt) and Zona Comun ($8/mt), and down in Balboa ($7/mt)
• HSFO prices up in Houston ($3/mt) and Balboa ($2/mt), and down in New York ($24/mt)

Zona Común's VLSFO price benchmark has recorded the largest increase among all three fuel grades across the major ports in the Americas.

Dense fog forecast through 12 June could disrupt operations. Bunker deliveries at the anchorage have continued despite slightly rough weather conditions, a source told ENGINE.

VLSFO and LSMGO availability remains good, with typical lead times of 5-7 days.

In the US Gulf, bunker deliveries at the Galveston Offshore Lightering Area (GOLA) have experienced some delays due to overnight high swells. Disruptions could persist until 14 June, a trader said.

Recommended lead times for all three conventional fuel grades stand at 5-8 days this week.

Brent

The front-month ICE Brent contract has gained by $0.99/bbl on the day, trading at $93.13/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has moved higher in the wake of fading ceasefire hopes between Washington and Tehran.

In the latest round of fire exchange, the US Central Command (CENTCOM) has targeted Iranian military surveillance, communication systems and air defense sites.

“Oil prices have continued to rally… amid additional US strikes in Iran,” two analysts from ING Bank said.

Iran’s navy has responded to the US strikes by declaring a complete closure of the Strait of Hormuz to all vessel traffic.

These strikes have effectively erased the oil market’s optimism established by April’s fragile ceasefire.

The latest development “once again suggests a deal is still some way off and that energy flows from the Persian Gulf will remain heavily constrained,” ING Bank’s analysts said.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will be focused on any suggestions of progress in US-Iran negotiations.

Earlier this week, Israeli Prime Minister Benjamin Netanyahu said the Israel Defense Forces (IDF) will refrain from attacking Iranian sites “for now”.

By Gautamee Hazarika and Aparupa Mazumder

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