Bunker prices are mostly rangebound in the Americas, while tight HSFO380 supply in Houston has pushed its price to premiums over a range of other regional ports.
Changes on the day to 09.30 CST (14.30 GMT) today:
- VLSFO prices up in New York ($3/mt) and Zona Comun ($1/mt), and down in Houston ($8/mt), Balboa ($4/mt) and Los Angeles ($2/mt)
- LSMGO prices up in Balboa ($6/mt) and New York ($4/mt), steady in Zona Comun, and down in Houston ($7/mt) and Los Angeles ($3/mt)
- HSFO380 prices up in Houston ($7/mt), Los Angeles ($3/mt) and New York and Balboa ($2/mt)
Houston’s VLSFO price has gained on the day, while New Orleans’ price has been pushed down under pressure from a lower-priced stem to narrow its premium over Houston to $11/mt.
VLSFO prices in Houston and New Orleans since 1 June
Houston’s prices for both VLSFO and HSFO380 have increased against Balboa. Its VLSFO has narrowed to a $15/mt discount to Balboa, while its HSFO380 has risen to a $27/mt premium over Balboa. HSFO380 is in tight supply in Houston, and also at rare premiums of $2-4/mt over Los Angeles and New York.
HSFO380 prices in Houston, Balboa, Los Angeles and New York since 1 June
High winds suspended bunkering in Argentina’s Bahia Blanca and Zona Comun earlier this week. The winds are forecast to calm local time this evening to allow for deliveries to resume, and for suppliers to work through backlogs.
Rio Grande has high winds forecast until tomorrow afternoon, and gale-strength wind is forecast in Bahia Blanca on Friday.
Brent
ICE Brent September crude has risen by $0.30/bbl on the day to 09.30 CST (14.30 GMT), when it stood at $74.93/bbl.
Brent traded above $75/bbl earlier today, buoyed by yesterday’s data from the American Petroleum Institute (API) pointing to growing US oil demand, as US crude and gasoline inventories declined on the week. Crude inventories came down by 4.73 million bbls in the week to 23 July, and gasoline inventories by 6.23 million bbls, according to the API.
“US crude inventories fell more than expected last week, underscoring strong demand in North America,” DailyFX strategist Margaret Yang said.
Official data from the US Energy Information Administration (EIA) confirmed most of the crude stock draw and part of the draw for gasoline when it was released at 14.30 GMT today. Crude stocks fell by 4.09 million bbls and to their lowest level since January 2020, while gasoline stocks by 2.25 million bbls.
Brent traded slightly down in the half hour after the EIA figures were released.
Further gains for Brent continue to be capped by a global rise in new daily Covid-19 cases. US cases have spiked with the rapid spread of the Delta variant, and Sydney has extended its lockdown by four weeks as cases rise in Australia.
Investors will also closely monitor today’s Federal Reserve meeting for clues on the central bank’s monetary policy. The Fed is not expected to raise interest rates until 2023, but will start tapering its massive asset purchasing programme in good time before then. If the tapering timeline is pushed back more than analyst expect, it will likely weigh on the US dollar and spike prices for Brent and other dollar-denominated commodities, DailyFX’s Yang said.