Bunker fuel benchmarks have tracked Brent crude down, and operations at Zona Comun are expected to fully resume from tomorrow.

IMAGE: Container ship traffic in Los Angeles' Pier 300 Channel. Port of Los Angeles

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

• VLSFO prices down in Zona Comun ($66/mt), Los Angeles ($64/mt), Houston ($54/mt), New York ($53/mt) and Balboa ($49/mt)
• LSMGO prices down in Houston ($91/mt), Balboa ($87/mt), New York ($83/mt) and Los Angeles ($81/mt)
• HSFO prices down in Houston ($67/mt), New York ($60/mt), Los Angeles ($54/mt) and Balboa ($49/mt)

Bunker fuel prices have dropped sharply across key ports in the Americas after Brent fell by $8/bbl ($61/mt) in the past session.

Houston has seen the steepest decline of $91/mt for LSMGO. Two lower-priced 50-150 mt stems and one 150-500 mt stem were fixed at $759/mt, $760/mt, and $732/mt, respectively, dragging the benchmark lower.

VLSFO has dropped by $54/mt in Houston, after two 500-1,500 mt VLSFO stems were fixed at $564/mt and $565/mt, putting downward pressure on the benchmark.

Bunker demand in Houston has held steady this week, a source said.

A low-pressure weather system off the coast of Central America could develop into a tropical depression by this weekend.

"The system is moving slowly west-northwestward and could affect port operations in southern Mexico and Central America, including Puerto Chiapas, Puerto Quetzal, and Corinto," a source said.

Zona Comun has recorded the sharpest VLSFO price drop of $66/mt.

Deliveries at the anchorage have again been suspended due to strong wind gusts. However, operations are expected to fully resume by tomorrow afternoon, a source said

Brent

The front-month ICE Brent contract has lost $8.29/bbl on the day, to trade at $68.95/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Escalating geopolitical conflicts in the Middle East have continued to add risk premiums to commodities in recent days, putting upward pressure on Brent’s price.

Following US airstrikes on three major Iranian nuclear sites, Tehran has reportedly targeted US military base in Qatar’s capital city of Doha.

“The [Iranian] attack appeared to be measured though, with no casualties reported,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Separately, the Australian government has imposed sanctions on 60 vessels linked to Russia’s shadow fleet. This news has provided some support to Brent.

These sanctions are strategic measures aimed at reducing Russia's oil export revenues.

Downward pressure:

Brent’s price has lost momentum amid easing supply concerns in the global oil market.

US President Donald Trump has announced that a ceasefire between Israel and Iran was in place and urged both countries to uphold it.

The news has dragged oil prices lower, as earlier market expectations had factored in a potential escalation of the Middle East conflict.

Oil’s gains were capped “as President Trump’s “complete and total” ceasefire between Israel and Iran capped off what now feels like a geopolitical false start,” SPI Asset Management managing partner Stephen Innes said.

By Gautamee Hazarika and Aparupa Mazumder

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