Americas Market Update 6 July

Bunker prices have moved sharply in both directions for some grades in major Americas ports.

IMAGE: OOCL container ship near Houston. Port Houston

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

• VLSFO prices up in Balboa ($33/mt) and Zona Comun ($7/mt), and down in Houston ($22/mt) and New York ($14/mt)
• LSMGO prices up in Balboa ($15/mt), and down in Houston ($24/mt) and New York ($3/mt)
• HSFO prices up in Houston ($6/mt), steady in Balboa, and down in New York ($10/mt)

Houston’s VLSFO and LSMGO prices have dropped against the general market direction. Indicative VLSFO and LSMGO prices have come in roughly at Friday’s lowest indications, but a step down from the highest levels at the end of last week.

The earliest delivery date with a supplier in Los Angeles and Long Beach is in two days for all three conventional grades.

VLSFO and LSMGO deliveries are possible with a seven-day lead time with a supplier in the Galveston Offshore Lightering Area (GOLA) and Bolivar Roads.

The earliest delivery dates with one supplier in New Orleans are six days out, while another supplier can deliver in three days.

New York is forecast with periods of high wind gusts from today until Friday.

Bunkering off Trinidad can be suspended by high winds and choppy seas forecast from tomorrow until Friday.

One supplier in Peru’s Callao has no LSMGO availability for a delivery a week out. Two other suppliers can meet that timeline.

Brent

Front-month ICE Brent contract has extended its rise by adding $0.34/bbl on the day since Friday, coming in at $71.92/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

The global oil market is currently in a wait-and-watch mode amid the US-Iran standoff on a permanent transit protocol through the Strait of Hormuz.

Iran plans to introduce new transit fees for vessels in the Strait of Hormuz, its ambassador to China Abdolreza Rahmani Fazli said on Saturday, adding that Tehran is working with Oman on a new framework covering shipping services and regional supervision.

Fazli indicated at the World Peace Forum in Beijing that “friendly” countries will receive special treatment, Iranian state media reported.

The US has consistently rejected Tehran's proposals to impose transit fees or tolls in the Strait of Hormuz, maintaining that the strategic waterway must remain open to passage for global commerce.

Downward pressure:

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to increase oil output again, this time for August.

Seven members of the oil producers’ group have decided to hike production by 188,000 b/d next month.

The adjustment will come from the 1.65 million b/d additional voluntary cut announced in April 2023, OPEC said.

This comes amid a temporary peace agreement between Washington and Tehran – a move that is expected to reopen the Strait of Hormuz to commercial vessel traffic and restore global crude oil flows.

By Erik Hoffmann and Aparupa Mazumder

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