Bunker benchmarks in the Americas ports have taken mixed directions, and bunkering has remained suspended in GOLA.

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

• VLSFO prices up in New York ($2/mt), and down in Los Angeles ($8/mt), Houston and Balboa ($3/mt)
• LSMGO prices unchanged in Houston, down in New York ($12/mt) and Los Angeles ($11/mt) and Balboa ($2/mt)
• HSFO prices up in Balboa ($30/mt), New York ($20/mt) and Houston ($4/mt), and down in ($4/mt)

Balboa’s HSFO price has gained by $30/mt over the weekend, while the port’s VLSFO price has dropped marginally, narrowing the port’s Hi5 spread from $104/mt, to $71/mt.

Cristobal’s HSFO price has gained by $25/mt since Friday. Even though Balboa’s HSFO price has made sharper gains, Cristobal’s HSFO is still priced at a premium over Balboa's.

Bunkering has remained suspended in the Galveston Offshore Lightering Area (GOLA) since last Wednesday due to rough weather conditions. The area is experiencing wind gusts, making barge deliveries difficult there.

Bunkering has also remained suspended in the Bahamas’ Freeport since last Thursday because of the rough weather. The area is currently experiencing strong wind gusts of up to 27 knots, making bunkering difficult there. Rough weather conditions are forecast until Thursday.

Brent

The front-month ICE Brent contract has remained steady on the day from Friday, to trade at $74.27/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price found marginal support from the recent killing of Yahya Sinwar, a prominent Hamas leader. The killing was confirmed after the Israel Defense Forces (IDF) released footage on the social media platform X (formerly Twitter).

The news has prompted oil market analysts and traders to expect more planned attacks by Israel. “Oil still awaits the coming response by Israel against Iran for its record-breaking missile barrage on Israel,” Price Futures Group’s senior market analyst Phil Flynn remarked.

“Iran also is the major funder of what’s left of Hamas, so Israel still sees Iran as a legitimate target,” he added.

Brent’s price found additional support after the US Energy Information Administration (EIA) reported a decline in US crude stocks last week. Commercial crude oil inventories in the US dropped by 2.19 million bbls to touch 421 million bbls on 11 October, according to data from EIA.

Downward pressure:

Brent futures declined due to easing of concerns about supply disruptions in the Middle East.

According to a report by The Guardian, US President Joe Biden has urged Israeli Prime Minister Benjamin Netanyahu to make progress towards a ceasefire deal in Gaza. “The removal of key Hamas leaders in recent weeks has presented an opportunity for a reset in the broader Israel/Hamas war,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile, other reports suggest that Israel would avoid targeting Tehran’s oil and energy facilities.

China’s economic recovery has been little, despite the announcement of a stimulus package. This has led to sublime factory activity in the world’s second-largest oil consumer and capped Brent’s price gains.

Chinese crude oil imports declined in the previous month, to touch 11.07 million b/d, down from 11.56 million b/d imported in August.

“China’s economy is still fragile,” SPI Asset Management’s managing partner Stephen Innes said. “The pressure on Beijing to deliver bolder fiscal reforms and more substantial stimulus measures is intensifying,” he added.

By Debarati Bhattacharjee and Aparupa Mazumder

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