Bunker fuel benchmarks have moved in mixed directions, while weather conditions on the US East Coast have improved after Hurricane Erin passed.

IMAGE: Cranes in the Port of New York and a silhouette of the Statue of Liberty. Getty Images

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

• VLSFO prices up in Zona Comun ($14/mt), Houston ($12/mt), New York and Balboa ($5/mt), and down in Los Angeles ($6/mt)
• LSMGO prices up in Balboa ($18/mt), New York ($12/mt), Houston ($1/mt), and down in Zona Comun ($11/mt) and Los Angeles ($5/mt)
• HSFO prices up in Balboa ($19/mt), and down in Houston ($8/mt), Los Angeles ($7/mt) and New York ($2/mt)

Balboa has been the only port where all three grades have increased in the past session, with its LSMGO and HSFO benchmarks recording the largest gains.

The port is currently favoured with good weather conditions and has received a healthy number of enquiries over the past week, a bunker trader tells ENGINE.

Los Angeles’s VLSFO price benchmark has fallen, while all other ports have recorded an increase in the grade. None the less, it is currently at premiums of $27/mt to New York and $40/mt to Houston.

Prompt availability across all fuel grades remains good in Los Angeles and Long Beach, with suppliers recommending lead times of 5–7 days for VLSFO and LSMGO. HSFO requires approximately 7–8 days.

Weather conditions at the port of New York have improved after Hurricane Erin passed.

Meanwhile, a new tropical storm, Fernand, has formed in the Atlantic, and the National Hurricane Centre is issuing advisories for it.

Brent

The front-month ICE Brent contract has gained $.29/bbl on the day, to trade at $68.03/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

US Federal Reserve’s (Fed) chairman Jerome Powell’s speech at Jackson Hole on Friday has provided a boost to the larger commodity complex, including Brent crude’s price.

Powell’s remarks have raised hopes of a 25-basis point interest rate cut in September, according to market analysts.

“In the near term, we may see the oil market benefit following Fed Chair Jerome Powell’s Jackson Hole speech, which was largely dovish and provided a boost to most risk assets,” said two analysts from ING Bank.

Lower interest rates in the US can boost demand, making dollar-denominated commodities like oil cheaper for holders of other currencies.

“The market is pricing in more than an 85% probability that the Fed cuts interest rates by 25bp in September, up from around 72%,” the two ING analysts added.

Downward pressure:

The US-imposed 25% secondary tariffs on India for its purchase of Russian oil are set to take effect on 27 August. This news has put some downward pressure on Brent’s price today.

“There appears to be little progress in trade talks between India and the US, since the US announced the tariff earlier in the month,” ING Bank’s analysts remarked.

White House trade adviser Peter Navarro has criticised India’s imports of Russian crude, saying they are effectively financing Moscow’s war in Ukraine.

“If India continues to buy Russian oil despite the 25% secondary tariff, it does little to change the market outlook. Instead, it only confirms the bearish outlook for oil prices,” ING’s analysts said.

By Gautamee Hazarika and Aparupa Mazumder

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