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

• VLSFO prices up in Los Angeles ($7/mt), unchanged in Zona Comun, and down in Houston ($23/mt), New York ($6/mt) and Balboa ($4/mt)
• LSMGO prices up in Balboa ($4/mt), unchanged in Houston, and down in Los Angeles ($13/mt) and New York ($6/mt)
• HSFO prices up in Balboa ($11/mt), unchanged in Los Angeles, and down in New York ($4/mt) and Houston ($3/mt)

Houston has seen a jump in the number of stems fixed in the past day. Five stems for both prompt and non-prompt delivery have been recorded by ENGINE since yesterday. Two stems each have been for VLSFO and LSMGO, and one for HSFO.

The two VLSFO stems were fixed at lower prices than Houston’s benchmark noted a day ago, pulling the port’s VLSFO benchmark lower. New York’s VLSFO price drop has been smaller compared to Houston’s, to widen its VLSFO premium over Houston from $32/mt to $49/mt.

Houston’s HSFO price has dropped slightly in the past day. This has narrowed the port’s Hi5 spread by $100/mt to $80/mt.

Bunker operations have remained suspended in Argentina’s Zona Comun anchorage since Friday due to strong wind gusts of up to 37 knots. Heavy bunkering delays are expected at the anchorage, a source says.

Brent

The front-month ICE Brent contract has remained unchanged on the day, to trade at $77.48/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Oil prices gained support after Kyiv launched one of the biggest missile attacks since the Russian invasion started in February 2022.

Ukraine launched at least eleven drones towards Moscow, six over the Belgorod region, three over the Kaluga region, and two over the Kursk region, Reuters reports.

Several energy facilities in these regions have been prone to such attacks since the beginning of the conflict. “This is one of the largest attempts to attack Moscow using drones ever,” Moscow’s mayor Sergei Sobyanin said on the Telegram messaging app.

Market analysts argue that these attacks have put the region’s oil supply under threat and pushed Brent’s price higher.

Oil investors have “been on edge” as they await Iran’s response to the assassination of leaders from its proxies – Hamas and Hezbollah armed groups, ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent’s price traded lower amid growing concerns about China’s demand growth. Oil consumption in the world’s second-largest consumer fell by 8% year-on-year to 13.55 million b/d in July, according to China’s General Administration of Customs (GACC).

In the Middle East, a ceasefire deal agreed upon by Israel has further eased supply concerns and weighed on oil prices, analysts said. The agreement, proposed by the US, aims to end violence in the Gaza Strip and de-escalate tensions between Israel and Hamas group.

“Crude continues lower on demand concerns after China’s apparent oil demand fell 8.8% y/y [year-on-year] in July, while raised hopes for a Gaza ceasefire also weigh on sentiment,” analysts from Saxo Bank said.

The US pointed out that Israel is now awaiting Hamas’ response to the agreement. “US Secretary of State Antony Blinken put the onus on Hamas to end the conflict, saying the group must say yes,” Hynes added.

Source: ENGINE by Debarati Bhattacharjee and Aparupa Mazumder