Fuel benchmarks have shown mixed movements this week, while demand in Balboa has remained steady.

IMAGE: Aerial view of Houston Ship Channel. Port of Houston

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

• VLSFO prices up in Zona Comun ($3/mt) and Balboa ($1/mt), and down in Houston ($19/mt), Los Angeles ($4/mt) and New York ($3/mt)
• LSMGO prices up in Houston and Zona Comun ($9/mt) and New York ($4/mt), and down in Los Angeles ($5/mt) and Balboa ($4/mt)
• HSFO prices up in Houston ($3/mt), and down in New York ($5/mt), Los Angeles and Balboa ($4/mt)

Houston's HSFO price benchmark has increased, while other ports have recorded a decline in prices for the grade.

In Houston, HSFO fuel availability remains tight and requires lead times of at least 7 days. Bunker traders have advised booking well in advance to secure the grade.

The Houston market has been relatively slow this week. Fuel availability is good for both VLSFO and LSMGO, with suppliers recommending lead times between 3–7 days.

In Balboa, HSFO prices have decreased while VLSFO prices have risen in the past session, widening the port's Hi5 spread to $63/mt today.

The market in Panama continues to see steady to low demand. All three main grades at Balboa and Cristobal can be delivered within a lead time of 3–5 days.

No major weather disruptions are expected in the region, and bunkering operations are expected to continue smoothly.

Brent

The front-month ICE Brent contract has gained $0.05/bbl on the day, to trade at $66.12/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has gained after Ukrainian drones hit a Russian oil refinery located in Volgograd.

The falling drone debris caused an oil spill at the refinery, which subsequently caught fire, Volgograd region’s governor Andrey Bocharov said.

The oil refinery is owned by Russia’s biggest energy firm Lukoil, according to a Bloomberg report. It has a refining capacity of 300,000 b/d, said VANDA Insights’ founder Vandana Hari.

“Crude oil prices edged higher, recouping some of the losses recorded earlier this week as traders take stock of the geopolitical landscape,” remarked ANZ Bank’s senior commodity analyst Daniel Hynes.

Downward pressure:

Brent’s price has felt some downward pressure amid uncertainty ahead of today’s highly anticipated meeting between US and Russian Presidents Donald Trump and Vladimir Putin.

If successful, the meeting could secure a US-brokered ceasefire between Moscow and Kyiv – a goal the US President has pursued since the start of his second term – and potentially lead to the lifting of global sanctions on Russian energy.

“Hopes are high that Friday’s meeting between Presidents Putin and Trump might remove much of the sanction risk hanging over the market,” two analysts from ING Bank said.

By Gautamee Hazarika and Aparupa Mazumder

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