Fuel prices have shown mixed movements, and rough seas may lead to bunkering delays in New York.

IMAGE: New York Harbor. Getty Images

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

• VLSFO prices up in Zona Comun ($3/mt), Houston ($2/mt), unchanged in New York, and down in Balboa ($26/mt), Los Angeles ($1/mt)
• LSMGO prices up in Zona Comun ($21/mt), Houston ($3/mt), and down in Balboa ($30/mt), New York ($26/mt) and Los Angeles ($1/mt)
• HSFO prices up in New York ($5/mt), and down in Balboa ($7/mt), Los Angeles ($3/mt) and Houston ($1/mt)

New York's LSMGO price benchmark has dipped by $26/mt after a lower-priced 150-500 mt LSMGO stem, fixed at $710/mt, put downward pressure on the benchmark.

The port's HSFO price, on the contrary, has gained by $5/mt after a higher-priced 150-500 mt HSFO stem, fixed at $450/mt, offered upward pressure to the benchmark.

The port is expecting some high wind gusts, along with waves ranging between 2-3 feet, which can cause minor delays and disruptions to bunker operations at the port.

Weather conditions are expected to improve by Thursday midday, a source said.

Meanwhile, Zona Comun's LSMGO price has recorded the highest gain in the past session, and fuel availability at the anchorage remains normal for both VLSFO and LSMGO, with recommended lead times of 6-7 days.

Balboa's VLSFO price has also dipped by $26/mt after a lower-priced 500-1500 mt VLSFO stem, booked at the port at $490/mt, put downward pressure on the benchmark.

VLSFO and LSMGO are available at the ports with lead times of 3-4 days. HSFO supply is tight at Balboa and requires at least a week to be delivered.

Brent

The front-month ICE Brent contract has gained $0.39/bbl, to trade at $67.01/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has moved higher after Israel launched an airstrike on Qatar’s capital city of Doha. The Israel Defense Forces (IDF) has claimed that the airstrike targeted senior Hamas leaders based in Qatar.

“This is the first strike in the region since the beginning of the nearly two-year conflict,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

The strike did not hit any oil production or storage facilities, however, it has heightened concerns of a broader geopolitical instability in the Gulf region – a vital conduit for global energy flows, according to market analysts.

Oil got a further boost after Poland intercepted Russian drones targeting western Ukraine earlier today, Reuters reported.

This is the first instance of a NATO member engaging directly in the Russia-Ukraine conflict, which is now in its third year.

Downward pressure:

Brent’s price has felt some downward pressure due to mounting concerns of a supply glut in the fourth quarter of this year.

These concerns come as OPEC+ oil producers group continue to drive oil production higher. Last week, the coalition agreed to collectively increase supply by 137,000 b/d in October.

Notably, eight OPEC+ members introduced two voluntary output cuts in 2023 – 1.65 million b/d in April and 2.2 million b/d in November.

The group plans to fully unwind the 2.2 million b/d reduction this month, while last week’s decision begins phasing out the April cut, OPEC said.

“This [OPEC’s latest decision to increase production by 137,000 b/d] 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,” Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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