Americas Market Update 19 June

Fuel prices in the Americas have moved in mixed directions, and bunkering operations in New York could face disruptions due to adverse weather conditions.

IMAGE: Container ship leaving the Port of Houston at Morgan's Point. Getty Images.

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

• VLSFO prices up in Balboa ($32/mt), Zona Comun and Houston ($16/mt), and down in Los Angeles ($38/mt) and New York ($9/mt)
• LSMGO prices up in Zona Comun ($57/mt), Balboa ($17/mt), New York ($13/mt) and Houston ($8/mt), and down in Los Angeles ($2/mt)
• HSFO prices up in Balboa ($15/mt) and Houston ($3/mt), and down in New York ($5/mt) and Los Angeles ($1/mt)

Houston's VLSFO price has increased after a higher-priced 150–500 mt stem, fixed at $720/mt, put upward pressure on the benchmark.

The port's LSMGO price has also increased over the past day after a higher-priced 50–150 mt stem, fixed at $970/mt, pushed the benchmark up.

Nonetheless, Houston's LSMGO is trading at a discount of $99/mt to New York.

Bunker demand in New York has dipped compared to previous weeks. The port is also expecting disruptions over the weekend from strong wind gusts across the region, which could delay some deliveries, a source said.

Prompt availability is tight in New York for VLSFO and HSFO, with suppliers recommending lead times of 6–7 days. LSMGO can be delivered within 2–3 days.

Brent

The front-month ICE Brent contract has gained by $0.48/bbl on the day, trading at $78.93/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has moved higher after talks between US and Iran, to finalise the peace deal, got stalled.

Earlier this week, US President Donald Trump fast-tracked an interim agreement to cease all hostilities in the Middle East by physically signing the deal ahead of a state dinner in Versailles, France.

However, a formal signing ceremony between Washington and Tehran was planned to take place in Switzerland today, the White House had told earlier.

US Vice President JD Vance cancelled plans to travel to Switzerland, raising doubts about the viability of a lasting peace agreement, Reuters reported.

Israel has sidelined itself from the US-Iran deal after being left out of the talks, maintaining its offensive against the Hezbollah militant group in Lebanon – a stance that intensifies concerns regarding the agreement's long-term stability.

“Iran suspends start of nuclear talks over continued Israeli strikes on Lebanon,” VANDA Insights’ founder Vandana Hari remarked.

Downward pressure:

Brent crude’s price has remained below the $80/bbl mark as a partial normalisation of shipping through the Strait of Hormuz begins to alleviate the market's primary concern – potential disruptions to global crude flows.

Crude oil tankers stranded in the region are resuming transit, with around 10 million bbls exiting or moving through the strait, according to two analysts from ING Bank. “Kuwait is already signalling a gradual restart,” the two analysts said.

The current level remains largely below typical flows of around 20 million b/d, but the gap is expected to narrow as production recovers.

“Oil prices are on track for a sharp weekly decline, as shipping flows through the Strait of Hormuz begin to normalise and disruption concerns ease,” two analysts from ING Bank noted.

By Gautamee Hazarika and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online