Most bunker benchmarks in major Americas ports have dropped with Brent, and bunker operations are suspended in GOLA.

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

• VLSFO prices up in Zona Comun ($14/mt) and Los Angeles ($3/mt), and down in Houston, New York and Balboa ($1/mt)
• LSMGO prices up in Los Angeles ($30/mt), Balboa ($15/mt) and New York ($2/mt), and down in Houston ($8/mt)
• HSFO prices up in Balboa ($15/mt), Los Angeles ($2/mt) and Houston ($1/mt), and down in New York ($1/mt)

Los Angeles’ LSMGO price has gained heavily in the past day with support from a higher-priced firm offer. Meanwhile, Houston’s LSMGO price has dropped to widen its LSMGO price discount to Los Angeles to $35/mt.

Balboa’s HSFO price has gained more than the port’s VLSFO price. This has narrowed Balboa’s Hi5 spread from $106/mt yesterday, to $90/mt now.

Balboa’s HSFO price has also increased steeply compared to Cristobal’s HSFO. The steep gain has erased its price discount to Cristobal’s HSFO from $12/mt yesterday to bring it to parity now.

In the Galveston Offshore Lightering Area (GOLA), bunker operations have been suspended today due to rough weather conditions. A short window of calm weather on Thursday morning could enable bunker operations to resume briefly in GOLA before conditions worsen again.

Brent

The front-month ICE Brent contract has moved $0.25/bbl higher on the day, to trade at $72.93/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent’s price found some support as the geopolitical conflict in the Middle East intensified. The crucial ceasefire deal between Israel and Iran-aligned Hezbollah militants appears to be in a delicate condition, following cross-border strikes from both sides.

The Israel Defense Forces (IDF) said that the Lebanon-based militant group launched projectiles into Israeli territory on Monday, violating the terms of the ceasefire agreement between the two countries.

“Geopolitical risk is still high as the Israeli cease fire in Lebanon broke down,” Price Futures Group’s senior market analyst Phil Flynn said.

Analysts and traders also await OPEC’s ministerial meeting on Thursday where the group is expected to extend the ongoing production cut.

The eight members collectively cutting output by 2.2 million b/d are likely to continue through the first quarter of 2025, according to a Reuters report.

Downward pressure:

The crude oil supply outlook remains uncertain, with market analysts anticipating that the upcoming OPEC+ meeting will be crucial in determining price direction.

While the Saudi Arabia-led group had initially planned to gradually reverse the 2.2 million b/d production cut in October, it opted instead to extend the cuts through the end of the year to bolster oil prices.

OPEC+ has rescheduled its meeting to discuss the 2025 output policy. Originally planned for 1 December, the meeting will now be held virtually on 5 December.

“The oil balance does not need this additional supply as it will push the market into a large surplus,” two analysts from ING Bank said. “The challenge is that the group needs to find a balance between trying to support the market and limiting its loss in market share,” they added.

By Debarati Bhattacharjee and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online