Bunker fuel benchmarks have mostly trended downward, while Hurricane Kiko has weakened into a tropical storm in the Eastern Pacific.

IMAGE: Container ship leaving the Port of Houston at Morgan's Point. Getty Images

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

• VLSFO prices up in Houston ($8/mt), and down in Balboa ($16/mt), Zona Comun ($3/mt), New York and Los Angeles ($2/mt)
• LSMGO prices up in Houston ($17/mt) and New York ($2/mt), and down in Balboa ($12/mt), Zona Comun ($7/mt) and Los Angeles ($1/mt)
• HSFO prices up in Los Angeles ($3/mt), and down in New York, Balboa ($5/mt) and Houston ($2/mt)

Houston's LSMGO price benchmark has recorded the highest gain in the last session. However, it is still trading at a wider discount of $40/mt to New York today, compared to a $25/mt discount a month ago.

The weather at the port has remained favorable for bunkering. "Weather is expected to stay calm through the week," a bunker trader has told ENGINE.

In the Eastern and Central Pacific, Kiko has weakened from a hurricane into a tropical storm.

Los Angeles' HSFO price has recorded the highest gain amongst the ports and is currently at a small premium of $12/mt to Houston and a discount of $13/mt to New York.

Fuel demand continues to slump on the West Coast, with Los Angeles reporting fewer enquiries at the port.

Availability-wise, the port is reporting adequate stocks, where suppliers can deliver HSFO and LSMGO within lead times of 6-7 days. Recommended lead time for VLSFO stands at around 7-8 days.

Brent

The front-month ICE Brent contract has lost $0.06/bbl, to trade at $66.62/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent prices have found support from expectations that China will continue stockpiling oil and from concerns over possible new sanctions on Russia.

China’s stockpiling — which has helped absorb excess production this year — is likely to continue at a similar pace in 2026, according to Reuters citing a market watcher.

“Sentiment was also supported by data showing strong demand from China,” said Daniel Hynes, senior commodity strategist at ANZ Bank.

Speculation of additional sanctions on Russia also lent support to prices after the country’s largest airstrike on Ukraine set fire to a government building in Kyiv. US President Donald Trump told he was prepared to move to a second phase of restrictions, Reuters reported.

Further sanctions would reduce Russia’s oil exports to global markets, tightening supply.

“Reports that Russian oil flows could be further disrupted provided some support to oil prices,” Hynes added.

Attention is also on the US Federal Reserve, with its Federal Open Market Committee set to meet next week. Traders currently see an 89.4% chance of a quarter-point rate cut.

Lower interest rates reduce consumer borrowing costs and can stimulate economic growth, boosting oil demand.

Downward pressure:

Eight members of OPEC and its allies (OPEC+) have agreed to raise production by a combined 137,000 b/d in October, a move that has weighed on Brent futures.

“This marks the reversal of cuts that were set to remain in place until the end of 2026, following the rapid return of the previous tranche of idled barrels over recent months,” said ANZ Bank’s Hynes. “The …increase was viewed as a warning that the group is ready to push more barrels onto the market,” he added.

By Gautamee Hazarika and Tuhin Roy

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