Most bunker prices in the Americas have gained, with the notable exception of Balboa's HSFO and LSMGO prices.

Changes on the day to 07.00 CST (13.00 GMT) today:

• VLSFO prices up in New York ($10/mt), Houston ($4/mt), Balboa ($2/mt), Los Angeles and Zona Comun ($1/mt)
• LSMGO prices up in New York ($11/mt), Los Angeles ($3/mt) and Houston ($2/mt), and down in Balboa ($20/mt)
• HSFO prices up in Houston ($5/mt), New York ($4/mt) and Los Angeles ($1/mt), and down in Balboa ($16/mt)

Balboa’s HSFO price has dropped in the past day with downward pressure from a 500-1,500 mt lower-priced stem. Meanwhile, Balboa’s VLSFO price has gained marginally. This has widened Balboa’s Hi5 spread from $93/mt yesterday, to $111/mt.

Cristobal’s HSFO price has gained by $4/mt and has swung from near parity to Balboa’s HSFO to a premium of $20/mt now. 

Bunkering has been proceeding normally in the Galveston Offshore Lightering Area (GOLA) today. However, bunkering is expected to be suspended again over the weekend due to a forecast of strong wind gusts.

Brazilian fuel supplier Vibra has halted VLSFO offering at Vila do Conde and Belém. The company said it faced several challenges since starting bunkering operations in the region and decided to end the project to focus on other opportunities.

Brent

The front-month ICE Brent contract has traded $0.03/bbl higher on the day, to trade at $73.26/bbl at 07.00 CST (13.00 GMT) today

Upward pressure:

Brent futures gained momentum as the market shifted focus from geopolitical risk premiums to OPEC’s next move, after the oil consortium postponed its ministerial meeting to 5 December.

The Saudi Arabia-led oil producers’ group will discuss its plan to phase out its voluntary production cut of 2.2 million b/d at its upcoming virtual meeting. However, market analysts expect the group members to maintain production cuts through January 2025 to support prices.

“Crude oil prices were steady as the market contemplates the next move by OPEC,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Peace talks in Lebanon, mediated by the US and France, have eased supply disruption concerns in the oil market and put some downward pressure on Brent’s price.

A ceasefire deal between Israel and Iran-aligned Hezbollah armed group was achieved earlier this week. Israel’s war cabinet approved the agreement, effective Wednesday morning across the Lebanon-Israel border.

“A ceasefire agreement between Israel and Hezbollah giving us a ray of hope that maybe we can find a way out of the vicious cycle of war that has plagued the world over the last four years,” Price Futures Groups’ senior market analyst Phil Flynn remarked.

By Debarati Bhattacharjee and Aparupa Mazumder

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