Fuel prices have shown mixed movements, and bunker operations are currently underway after improved weather conditions in Zona Comun.

IMAGE: Container vessels docked in the Port of Balboa. Getty Images

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

• VLSFO prices up in Balboa ($4/mt), unchanged in New York and Zona Comun, and down in Los Angeles ($3/mt) and Houston ($2/mt)
• LSMGO prices up in Zona Comun ($3/mt), and down in New York ($9/mt), Houston ($4/mt), Los Angeles and Balboa ($1/mt)
• HSFO prices up in New York ($9/mt), and down in Houston, Los Angeles ($2/mt) and Balboa ($1/mt)

Balboa's VLSFO price has gained after a higher-priced 500–1,500 mt VLSFO stem has been booked at the port at $513/mt, putting upward pressure on the benchmark.

Meanwhile, the port's HSFO price has fallen, widening the Hi5 spread to $38/mt today from $33/mt on Thursday.

Fuel availability has remained good in Panama, with the ports of Balboa and Cristobal receiving a healthy number of enquiries this week, a bunker trader has told ENGINE.

New York's LSMGO price has fallen by $9/mt, after the fixing of a lower-priced 50–150 mt LSMGO stem booked at $727/mt, which has put downward pressure on the benchmark.

Fuel demand has picked up in New York, with the port reporting healthy availability across all three grades. Recommended lead times this week are around 3–5 days.

In Zona Comun, weather conditions have improved after the anchorage location experienced high wind gusts blowing between 23-25 knots, which disrupted bunkering operations until early Friday morning, a source said.

Brent

The front-month ICE Brent contract has lost $0.9/bbl, to trade at $65.81/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Growing aggression between Russia and Ukraine has continued to lend some support to Brent crude’s price this week.

The Ukrainian military has targeted major Russian oil facilities in recent weeks, including oil refineries in Krasnodar and Syzran, according to a Reuters report.

“Escalating tensions persist as Ukraine continues to target Russian oil refineries, disrupting Russia’s oil product flows,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

The Krasnodar oil refinery produces about 3 million mt/year of light petroleum products, the Reuters report adds.

Downward pressure:

Brent crude has remained under pressure amid concerns of increasing OPEC+ supply.

The group is scheduled to meet on Sunday to discuss production levels, after eight members of the group unwound voluntary cuts of 2.2 million b/d over the past six months. The voluntary production cuts were announced in 2024.

“Market expectations are growing that the [OPEC+] group will continue to push more barrels into the market, in an effort to gain market share lost to US shale producers in recent years,” Hynes said.

The latest US crude inventory report has put further downward pressure on Brent. Commercial US crude oil inventories have gained by 2.4 million bbls to touch 421 million bbls for the week ending 29 August, according to data from the US Energy Information Administration (EIA).

“Sentiment wasn’t helped by a bearish US inventory report,” Hynes said. US crude oil stockpiles are “now at their highest level since early August,” he added.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.

By Gautamee Hazarika and Aparupa Mazumder

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