Fuel prices have shown mixed movements, and marine warnings remain in effect for the Southwest North Atlantic.

IMAGE: Aerial view of Port Newark. Getty Images

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

• VLSFO prices up in New York ($8/mt) and Houston ($5/mt), unchanged in Zona Comun, and down in Balbao ($9/mt)
• LSMGO prices up in New York ($8/mt), Houston ($6/mt) and Balboa ($1/mt), and down in Zona Comun ($7/mt)
• HSFO prices up in New York ($13/mt), and down in Balboa ($33/mt) and Houston ($1/mt)

Balboa's HSFO price has dipped sharply by $33/mt, while the port's VLSFO price has only declined by $9/mt, widening the Hi5 spread to $65/mt today from $41/mt on Wednesday.

In Balboa, HSFO continues to be tight, and suppliers are recommending booking volumes at least a week ahead. Vessel transits have also slowed in Balboa lately, a source notes.

VLSFO and LSMGO fuel stocks are reported to be healthy at Balboa and Cristobal, where suppliers are typically asking for 3–5 days for delivery.

The port of New York has recorded the highest increase in prices across all three fuel grades. The port's HSFO has gained the most and is currently trading at a premium of $33/mt to Houston, up from the $25/mt premium it held a month ago.

Fuel availability at both ports remains healthy, and the three fuel grades can be delivered within a week, according to sources.

The Atlantic hurricane season is underway. Currently, there are no active hurricanes, but the National Hurricane Center has issued advisories on tropical storm Gabrielle in the Atlantic, with marine warnings active in the Southwest North Atlantic.

Brent

The front-month ICE Brent contract has lost $0.2/bbl, to trade at $68.05/bbl at 08.00 CDT (13.00 GMT).

Upward pressure:

A big inventory draw in the US and interest rate cut by the US Federal Reserve have put upward pressure on Brent’s price today.

Commercial US crude oil inventories have declined by 9.3 million bbls to touch 415 million bbls for the week ending 12 September, according to data from the US Energy Information Administration (EIA).

“The drop [in US crude stocks] comes as exports almost doubled from the week before, while imports fell,” remarked two analysts from ING Bank.

A drop in US crude stocks typically signals higher demand and can lend support to Brent's price.

Additionally, the US Federal Open Market Committee (FOMC) cut its key interest rate by 25 basis points yesterday, to a range between 4.00-4.25%.

The move was “widely expected,” ING Bank’s analysts said. This marks the first interest rate cut in 2025. Lower US interest rates can spur demand by making dollar-priced oil cheaper for foreign buyers.

Downward pressure:

Brent’s price has felt some downward pressure as market participants remain focused on the supply glut expected by the end of this year.

Notably, the International Energy Agency (IEA) has projected the global oil market to remain oversupplied, with supply growth outpacing global oil demand in both 2025 and 2026.

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 energy agency sees “muted demand growth,” due to limited consumption in emerging economies and declining demand in industrialised nations, according to ING Bank’s analysts.

By Gautamee Hazarika and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online