Americas Market Update 5 June

Prices have mostly declined, and bunker fuel availability is good in Zona Comun.

IMAGE: View from city docks in Houston, Texas. Getty Images.

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

• VLSFO prices down in Zona Comun ($41/mt), Balboa ($16/mt), Los Angeles ($5/mt), New York ($3/mt) and Houston ($2/mt)
• LSMGO prices up in Zona Comun ($2/mt), and down in Balboa ($18/mt), Los Angeles ($6/mt), New York ($3/mt) and Houston ($1/mt)
• HSFO prices down in Los Angeles ($3/mt), Houston ($2/mt), New York and Balboa ($1/mt)

Zona Común's VLSFO price has recorded the steepest decline across all three fuel grades and ports, after a lower-priced 500-1,500 mt stem, fixed at $783/mt, put downward pressure on the benchmark.

Conversely, the port's LSMGO price has been the only grade to record gains across the key hubs in the Americas over the past session.

At the Argentinian anchorage, bunker deliveries continue normally, and the availability of VLSFO and LSMGO has remained good. Lead times for both grades have ranged between 6-8 days, a source said.

The hurricane season in the Atlantic has begun, and the National Hurricane Center has issued an advisory for Tropical Storm Amanda.

Brent

The front-month ICE Brent contract has lost by $0.24/bbl on the day, trading at $94.70/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has felt some upward pressure as Iran said there has been “no tangible progress” in the ongoing negotiations with the US on a lasting ceasefire agreement that can ultimately reopen the Strait of Hormuz.

“No tangible progress has been achieved in the negotiation process,” Bloomberg quoted Iran’s foreign minister Abbas Araghchi as saying.

Despite Pakistan-mediated negotiations between Washington and Tehran to end hostilities, oil market analysts are sceptical as concrete details remain elusive.

“These on-again, off-again developments keep the market on edge,” Price Futures Group’s senior market analyst Phil Flynn said. “We’ll keep watching for actual implementation on the ground,” he added.

Downward pressure:

Brent’s price is on track to close the week with a decline following the US-brokered truce deal between Israel and Lebanon earlier this week.

Under the agreement, Tel Aviv and Beirut will immediately cease all regional hostilities.

Market analysts view this progress as a potential bridge to a comprehensive agreement with Tehran - a move essential to reopening the Strait of Hormuz.

“The oil market continues to trade on expectations of an imminent resumption in energy flows from the Persian Gulf,” two analysts from ING Bank noted.

By Gautamee Hazarika and Aparupa Mazumder

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