Bunker fuel prices have shown mixed movements, and a fresh advisory has been issued for Tropical Storm Mario in the Eastern Pacific.

IMAGE: Cargo container ship moored at harbor. Getty Images.

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

• VLSFO prices up in Balboa ($16/mt), and down in Zona Comun and New York ($10/mt), Los Angeles ($3/mt) and Houston ($2/mt)
• LSMGO prices up in Balboa ($16/mt), New York ($5/mt) and Los Angeles ($4/mt), and down in Zona Comun ($27/mt) and Houston ($12/mt)
• HSFO prices unchanged in Balboa, and down in New York ($9/mt), Houston ($5/mt) and Los Angeles ($2/mt)

Balboa's VLSFO and LSMGO prices have recorded the highest gains in the past session, both increasing by $16/mt. Meanwhile, the port's HSFO price has remained unchanged, widening the port's Hi5 spread to $38/mt.

HSFO has been tight at the port, with suppliers currently advising lead times of more than a week.

In Balboa and Cristobal, VLSFO and LSMGO are generally available within 4–5 days, with one supplier able to deliver VLSFO in as little as 1–2 days.

Amid the ongoing hurricane season, the National Hurricane Center has issued an advisory on another new tropical storm, Mario, in the Eastern Pacific, where marine warnings are in effect.

Houston's LSMGO price has declined by $12/mt and is currently at a discount of $54/mt to New York, slightly more than the $48/mt discount it held a month ago.

Bunker demand in the Port of Houston has remained steady this week, with favorable weather conditions supporting smooth bunkering operations.

HSFO availability has improved at the port, with recommended lead times of under seven days. VLSFO and LSMGO remain more readily available, with suppliers advising lead times of 5–7 days.

Brent

The front-month ICE Brent contract has lost $0.3/bbl from Friday, to trade at $67.16/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

Brent’s price has moved higher over the weekend as Ukraine ramped up drone attacks on Russian oil facilities – adding fuel to supply disruption concerns in the global oil market, analysts said.

Kyiv has launched at least 361 drones into Russia overnight, targeting refineries and causing a fire at the Kirishi oil refinery in Russia's northwest, Reuters reported citing Russian officials.

“Oil prices extended last week’s gains this morning, following the latest attacks by Ukraine on refineries and ports in Russia,” remarked two analysts from ING Bank.

The attack comes days after Ukraine struck one of Russia’s largest oil exporting terminals in Primorsk.

The Primorsk terminal handles “almost half” of Russia’s seaborne crude oil exports, according to ANZ Bank’s senior commodity strategist Daniel Hynes. “The attacks were part of a 200-plus drone raid centred on the Leningrad region,” Hynes said.

Downward pressure:

The International Energy Agency (IEA) has projected the global oil market to stay heavily oversupplied, as weak demand continues to outweigh the pace of supply returning to the market.

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

The IEA now expects 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.

“The IEA also revised up its oil supply growth estimates primarily due to the return of OPEC+ supply,” ING Bank’s analysts added.

Earlier this month, OPEC+ oil producers group agreed to collectively increase supply by 137,000 b/d in October.

By Gautamee Hazarika and Aparupa Mazumder

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