Most bunker prices in the Americas have dropped since yesterday, and bunker operations are suspended in Zona Comun again.

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

• VLSFO prices down in Balboa ($13/mt), New York and Los Angeles ($6/mt), Zona Comun ($4/mt) and Houston ($3/mt)
• LSMGO prices down in Balboa ($12/mt), Houston and New York ($8/mt) and Los Angeles ($7/mt)
• HSFO prices down in Balboa ($6/mt), Houston and Los Angeles ($5/mt) and New York ($4/mt)

Zona Comun’s VLSFO price has dropped in the past day with pressure from a 500–1,500 mt lower-priced stem. Meanwhile, Buenos Aries’ VLSFO price has increased by $5/mt since yesterday. This has flipped Zona Comun’s $3/mt VLSFO price premium over Buenos Aries to a $6/mt discount.

Bunkering has been suspended in Zona Comun today due to rough weather conditions. The area is experiencing wind gusts of up to 30 knots, making barge deliveries difficult there. A window of calm weather on Sunday could enable bunker operations to resume in Zona Comun, before conditions deteriorate again from Monday onwards. Wind speeds are forecast to intensify further and touch 37 knots on Tuesday.

Most ports in the US Virgin Islands and Puerto Rico have reopened following Hurricane Ernesto passage, except for Fredriksted Port in St. Croix, which remains closed under “Port Condition ZULU,” according to the US Coast Guard.

The US National Hurricane Center (NHC) reported that Ernesto is expected to strengthen further before reaching Bermuda late Friday. All ports in Bermuda are currently closed.

Brent

The front-month ICE Brent contract has dropped $1.64/bbl on the day, to trade at $79.38/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Fresh economic data from the world’s largest oil consumer has supported demand growth expectations and boosted Brent’s price gains today. The US retail sales data released yesterday exceeded analysts’ expectations, according to Reuters. Retail sales in the country rose by 1% in July, indicating higher consumer spending and easing concerns about an economic slowdown that could dent oil demand.

This news has put upward pressure on Brent’s price, which is already reacting to recent developments in the Middle East, according to market analysts. “[Brent] crude oil reversed recent losses as positive economic data and supply side concerns boosted investor sentiment,” ANZ Bank’s senior commodity strategist Daniel Hynes noted.

Iran and its regional proxies in Lebanon and Yemen remain “poised” to retaliate to the recent killings of two Hamas and Hezbollah leaders, Hynes added.

Downward pressure:

Some downward pressure on Brent crude is arising from renewed ceasefire talks in the Israel-Hamas conflict, even as troops from Tel Aviv continued its ground assault in the Gaza Strip.

“Officials from the US and Israel began high-stakes negotiations for a Gaza ceasefire in the Qatari capital of Doha on Thursday,” VANDA Insights’ founder and analyst Vandana Hari said.

The talks have been reportedly boycotted by Hamas, according to Reuters.

Concerns about Chinese oil demand have prevented some of Brent’s price gains. Chinese refinery activity remained sluggish in July due to low demand. The country’s apparent oil demand fell 8% year-on-year in July, Hynes remarked.

Source: ENGINE by Debarati Bhattacharjee and Aparupa Mazumder