Fuel prices have moved higher across key ports in the Americas, and a new advisory has been issued for a tropical storm in the Eastern Pacific.

IMAGE: Aerial view of the Vincent Thomas Bridge across the Los Angeles Harbor. Getty Images

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

• VLSFO prices up in New York ($17/mt), Balboa ($13/mt), Los Angeles ($11/mt), Houston ($10/mt) and Zona Comun ($8/mt)
• LSMGO prices up in Los Angeles ($31/mt), New York ($22/mt), Balboa ($19/mt), Zona Comun ($13/mt) and Houston ($7/mt)
• HSFO prices up in New York ($12/mt), Los Angeles ($11/mt), Houston ($10/mt) and Balboa ($8/mt)

Los Angeles' LSMGO price has recorded a significant gain of $31/mt in the past session, and is currently at premiums of $68/mt to New York and $105/mt to Houston.

This marks an increase from the $43/mt premium it held over New York, while it maintained a similar premium against Houston a month ago on 12 August.

At the port, HSFO and LSMGO are available with recommended lead times of 5–7 days. VLSFO continues to be in strong demand, with recommended lead times of slightly less than a week to avoid spot premium prices.

New York's HSFO price has recorded the highest gain, but the port's VLSFO price has risen by $5/mt above its HSFO, widening the port's Hi5 spread to $84/mt today.

The National Hurricane Center has issued a new advisory for tropical depression Thirteen-E in the Eastern Pacific, where marine warnings are currently in effect.

Zona Comun is expected to face rough weather conditions over the weekend, which could cause short delays, but bunkering operations at the anchorage are set to continue, a local supplier has told ENGINE.

"There may be a little turbulence on Sunday at Zona Comun. We are expecting short delays but nothing untoward, at least by local standards," the source said.

Brent

The front-month ICE Brent contract has gained $0.95/bbl, to trade at $67.46/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent’s price has found some support from geopolitical risks in the Middle East and Russia this week.

Russia’s northwestern port of Primorsk, a key hub for oil and fuel exports, came under a drone attack earlier today, Reuters reported. Debris from the drone set fire to a vessel and a pumping station, the report added.

“Oil prices are on the rise as global geopolitical risks continue to escalate, leading to uncertainty about whether the market is heading toward an oversupply or a potential shortage,” said Price Futures Group’s senior market analyst Phil Flynn.

Meanwhile on Thursday, Israel struck Houthi bases in Yemen’s capital city Sanaa, one day after launching an airstrike on Doha, Qatar, claiming that the airstrike targeted senior Hamas leaders based in Qatar.

“Escalating geopolitical tensions, following Israel's attack on Hamas' leadership in Qatar and prospects of tighter Western sanctions on Russian energy exports, might help put a floor under oil prices,” remarked two analysts from ING Bank.

Downward pressure:

Brent’s price has moved lower amid expectations of a supply glut in the global oil market.

The International Energy Agency (IEA) now projects an even bigger oil surplus for next year, with OPEC+ producers ramping up output and adding more barrels to global supply.

Global oil supply increased in August to a record 106.9 million b/d, about 1.3 million b/d higher than the previous month, the IEA noted in its monthly Oil Market Report (OMR).

The energy agency now projects global oil supply to grow by 2.7 million b/d to average 105.8 million b/d in 2025 and rise by another 2.1 million b/d to average about 107.9 million b/d in 2026.

Oil has felt downward pressure “amid softening demand and persistent concerns over a looming global supply surplus,” ING Bank’s analysts said.

By Gautamee Hazarika and Aparupa Mazumder

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