Bunker prices have moved in mixed directions, while weather conditions have begun to improve at New York Harbor.

IMAGE: Aerial shot of a cargo ship loaded with containers docked in the Port of Long Beach. Getty Images

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

• VLSFO prices up in Houston ($7/mt), Zona Comun ($5/mt) and New York ($2/mt), unchanged in Los Angeles, and down in Balboa ($2/mt)
• LSMGO prices up in Houston ($7/mt), Zona Comun ($4/mt), Balboa ($3/mt) and Los Angeles ($2/mt), and unchanged in New York
• HSFO prices up in Houston and New York ($1/mt), unchanged in Los Angeles, and down in Balboa ($22/mt)

Balboa's HSFO price benchmark has defied both Brent's upward movement and the general market direction and has plunged by $22/mt in the past session. A lower-priced 500-1500 mt HSFO stem fixed at the port at $434/mt has put downward pressure on the benchmark.

These price shifts have resulted in the port's Hi5 spread widening to $78/mt today.

A local bunker trader has told ENGINE that the port has seen reduced demand for the grade, and HSFO is currently also trading cheaper than usual at the port.

New York's VLSFO price benchmark has gained by $2/mt, while Houston's price has increased by $7/mt.

Nonetheless, New York is still at a premium of $20/mt to Houston, up from the $14/mt premium it held a month ago.

Weather conditions at the port have improved with southwest winds blowing between 5-10 knots, along with waves of less than 1 foot.

The small craft advisory in effect at New York Harbor has been lifted.

Brent

The front-month ICE Brent contract has gained $0.76/bbl on the day, to trade at $67.74/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Oil prices rose as hopes for a peace deal between Russia and Ukraine faded. The three-and-a-half-year war continued on Thursday, with Russia launching an air strike near Ukraine’s border with the European Union, while Ukraine reported it had hit a Russian oil refinery. At the same time, US and European planners said allied national security advisers have developed military options, according to Reuters.

“Oil prices are on the rise, supported by … ongoing uncertainty about the prospects for peace between Russia and Ukraine,” said Phil Flynn, senior market analyst at Price Futures Group.

“Oil prices moved higher … as the initial enthusiasm over progress towards a ceasefire between Russia and Ukraine continues to fade,” analysts at ING Bank added.

Brent futures also gained support from a larger-than-expected drawdown in US crude inventories, signalling strong demand.

Commercial US crude oil stockpiles fell by 6 million barrels to 421 million barrels for the week ending 15 August, according to the EIA.

Market participants are closely watching the Jackson Hole economic conference in Wyoming for clues on whether the Federal Reserve might cut interest rates next month. Lower rates can stimulate economic growth and drive-up oil demand, which in turn could lift prices.

The annual meeting of central bankers began on Thursday, according to Reuters.

Downward pressure:

Brent prices came under some pressure after the US imposed a 25% tariff on Indian goods starting 27 August, in response to India’s continued imports of Russian oil. The move has raised concerns about possible trade disruptions and weaker demand growth, analysts said.

By Gautamee Hazarika and Tuhin Roy

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