Bunker fuel benchmarks have moved in mixed directions, while tropical storm Erin is forecast to bring rough seas along the US East Coast.

IMAGE: Aerial view of the ports of Long Beach and Los Angeles. Getty Images

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

• VLSFO prices up in Houston ($2/mt), and down in New York ($7/mt), Balboa ($5/mt), Los Angeles ($4/mt) and Zona Comun ($2/mt)
• LSMGO prices up in Houston ($3/mt), and down in New York ($9/mt), Los Angeles, Balboa and Zona Comun ($5/mt)
• HSFO prices unchanged in Balboa, and down in New York ($11/mt), Houston ($4/mt) and Los Angeles ($3/mt)

Balboa's HSFO price benchmark has remained unchanged in the latest session, while its VLSFO price has declined by $5/mt to narrow the Hi5 spread to $62/mt.

"Demand for VLSFO is better at the ports this week. HSFO has received fresh supplies. Currently, prices are cheaper for HSFO, but we have not seen much demand in the past few weeks," a local supplier tells ENGINE.

Houston's LSMGO price benchmark has increased, while New York's has fallen. This has narrowed Houston's discount to New York by $12/mt to $40/mt in the past day.

The Houston market has been relatively slow this week. Bunker fuel availability is good for both VLSFO and LSMGO, with suppliers recommending lead times of 3-7 days.

HSFO availability remains tight in Houston and requires a lead time of at least seven days.

In the Atlantic region, tropical hurricane Erin is currently active, which is expected to bring in rough sea conditions and thunderstorms across the US East Coast, the National Hurricane Centre said.

Brent

The front-month ICE Brent contract has lost $0.07/bbl on the day, to trade at $65.88/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent’s price has remained steady as the global oil market digested the outcome of US President Donald Trump’s meeting with Ukrainian counterpart Volodymyr Zelensky and key European leaders.

Last week, Trump met with Russian President Vladimir Putin in Alaska with the expectations to reach a ceasefire deal in the Ukraine conflict. However, no such outcomes were achieved.

“Trump and Putin walked away without a ceasefire, without even the illusion of one,” said SPI Asset Management managing partner Stephen Innes.

Oil market analysts now await the upcoming negotiations – a bilateral meeting between Zelensky and Putin, followed by a trilateral meeting involving the two conflicting nations and the US.

The Putin-Zelensky meeting “will be crucial, marking the first time the leaders meet since the war started,” remarked two analysts from ING Bank. “Betting markets aren’t overly convinced that we’ll see a ceasefire before the end of the year,” the analysts added.

Downward pressure:

Brent’s price felt some pressure amid trade concerns, after Washington imposed secondary tariffs on India in response to its continued imports of Russian oil. These tariffs are set to come to effect on later this month.

“The deadline (27 August) to come to a deal before tariffs are introduced is nearing,” ING Bank’s analysts said.

The move has fuelled worries over potential disruptions to trade flows and slower demand growth, weighing further on commodities like oil, according to market analysts.

“To make matters worse, trade talks that were set to take place in late August have reportedly been postponed,” the two analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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