Fuel price benchmarks have had mixed movements, while marine warnings are in effect for the Eastern Pacific region.

IMAGE: Cargo port with shipping containers along the entrance to the Panama Canal. Getty Images

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

• VLSFO prices up in Houston ($7/mt), New York ($6/mt) and Zona Comun ($1/mt), unchanged in Los Angeles, and down in Balboa ($18/mt)
• LSMGO prices up in Los Angeles ($12/mt), New York ($9/mt) and Houston ($7/mt), and down in Balboa ($10/mt) and Zona Comun ($9/mt)
• HSFO prices up in Balboa ($4/mt), unchanged in Los Angeles, and down in Houston ($10/mt) and New York ($1/mt)

Los Angeles' HSFO and VLSFO price benchmarks have remained unchanged in the past session, keeping the port's Hi5 spread steady from Friday at $120/mt.

"The US West Coast has been a bit quiet, but there has been a small influx in US East Coast demand, which has been nice," a bunker trader told ENGINE.

Suppliers in Los Angeles have good availability of all three grades, with recommended lead times of 5–7 days.

The US National Hurricane Center has issued advisories for Tropical Storm Kiko in the Eastern Pacific, with marine warnings also in place across the region.

Balboa's LSMGO price benchmark has plunged after a lower-priced 50–150 mt stem has been fixed at $713/mt.

HSFO supply in Panama, especially Balboa, remains under pressure and is expected to tighten further this week, with suppliers now requiring at least seven days to deliver the grade, a source said.

VLSFO and LSMGO can be delivered in 6–7 days in Balboa and Cristobal.

Brent

The front-month ICE Brent contract has gained just $0.01/bbl from Friday, to trade at $68.25/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Ukraine has continued to target Russian energy infrastructure over the weekend. This news has provided some support to Brent’s price.

The Ukrainian army said on Saturday that it had hit Russian oil refineries in Krasnodar and Syzran, according to a Reuters report.

Kyiv's military reported multiple explosions and a fire at the Krasnodar oil refinery, which produces 3 million mt/year of light petroleum products, the report adds.

“Ukrainian drone attacks on Russian energy infrastructure through August led to a spike in domestic fuel prices,” remarked two analysts from ING Bank. “If these attacks intensify, it could support product cracks,” the analysts said.

Downward pressure:

Brent crude has erased last week’s gains as market focus shifted from geopolitical concerns to the prospect of a supply glut later this year, as OPEC+ fully unwinds the existing 2.2 million b/d cut.

The surge in OPEC+ supply is “expected to push the market into surplus later this year,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

The oil producers’ alliance is due to meet on 7 September to discuss production levels, “although no talks have yet been held about its next move,” Hynes added.

By Gautamee Hazarika and Aparupa Mazumder

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