Bunker fuel prices have generally followed Brent’s recent decline, and Los Angeles has seen a resurgence in demand this week.

IMAGE: Aerial view of the East Coast commercial port with docks and containers. Getty Images.

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

• VLSFO prices down in Houston ($9/mt), Los Angeles, Balboa ($7/mt), New York and Zona Comun ($3/mt)
• LSMGO prices up in Los Angeles ($5/mt), New York and Balboa ($1/mt), and down in Houston ($10/mt) and Zona Comun ($9/mt)
• HSFO prices down in New York ($4/mt), and Houston, Los Angeles and Balboa ($1/mt)

Los Angeles' LSMGO price has defied Brent's downward movement and the general market trend, gaining $5/mt in the past session, followed by New York and Balboa’s price for the grade.

Los Angeles and Long Beach have performed better this week, reporting increased bunker inquiries. HSFO and LSMGO are available with recommended lead times of 5–7 days.

VLSFO continues to be in strong demand at the two ports, with recommended lead times of slightly less than a week to avoid spot premium prices, a source said.

Houston's VLSFO price has declined by $9/mt and is currently at a discount of $21/mt to New York, widening from the $13/mt discount it held a month ago.

Bunker demand in Houston has remained steady, aided by favorable weather and minimal rain.

Some barge congestion persists, but HSFO availability has improved and requires lead times of around seven days, while VLSFO and LSMGO can be delivered within 5–7 days.

Brent

The front-month ICE Brent contract has lost $0.5/bbl, to trade at $66.51/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent crude’s price has moved higher due to a knee-jerk risk premium added to the market after Poland intercepted Russian drones breaching its airspace yesterday.

The development marks the first time a NATO member has directly intervened in the Russia-Ukraine war, now in its third year.

“The incursion of Russian drones into Polish airspace raised concerns that the US would retaliate with further restrictions on Russia’s energy supplies,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Downward pressure:

Brent’s price has felt some downward pressure after the US Energy Information Administration (EIA) reported an increase in US crude stocks.

Commercial US crude oil inventories have gained by 3.9 million bbls to touch 425 million bbls for the week ending 5 September, according to data from the EIA.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure on Brent's price, according to market analysts.

By Gautamee Hazarika and Aparupa Mazumder

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