Fuel prices have moved in mixed directions, and demand has slowed in Houston.

IMAGE: Houston Ship Channel. Port Houston

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

• VLSFO prices up in Zona Comun ($2/mt), unchanged in Balboa, and down in Los Angeles ($5/mt), Houston ($3/mt) and New York ($2/mt)
• LSMGO prices up in Balboa ($2/mt), and down in New York ($26/mt), Los Angeles ($11/mt), Houston and Zona Comun ($6/mt)
• HSFO prices up in New York ($10/mt), and down in Houston, Balboa ($4/mt) and Los Angeles ($3/mt)

New York's LSMGO price has defied Brent's upward movement and plunged by a significant amount after a lower-priced 150–500 mt stem was booked at $728/mt in the port.

The grade, however, continues to maintain a $33/mt premium over Houston's LSMGO price, while remaining at a $91/mt discount to Los Angeles.

Meanwhile, New York's HSFO price benchmark has gained $10/mt after a higher-priced 150–500 mt HSFO stem was booked for $467/mt.

Bunker demand has shown signs of weakening for Houston this week, according to sources. In terms of availability, the port is well stocked and suppliers can deliver all three fuel grades within a week.

Houston has experienced good weather over the past few weeks, which has supported smooth bunkering operations.

Zona Comun's VLSFO price has risen, while other ports have recorded declines for the grade. At the anchorage, both VLSFO and LSMGO are available via barges, with lead times of 5–7 days.

Brent

The front-month ICE Brent contract has made a $0.43/bbl gain the past day, trading at $68.89/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Two major oil ports on Russia’s Black Sea coast – Caspian Pipeline Consortium (CPC) terminal and the Sheskharis facility – have temporarily halted the loading of tankers, following warnings of drone attacks, Bloomberg reported.

The renewed attack warnings highlight the growing impact of Ukraine’s sustained strikes on Russia’s energy infrastructure and have put upward pressure on Brent’s price today.

It is estimated that both facilities export “well over” 2 million b/d of Russian and Kazakh oil to global markets, “holding a major share of the world’s petroleum supply chain,” said two analysts from ING Bank.

Brent gained further after the US Energy Information Administration (EIA) reported a 600,000-bbl draw in US crude stocks.

The data showed "a larger-than-expected drop in US crude oil inventories,” the two ING analysts said. A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

Downward pressure:

Oil market participants are somewhat concerned over supply fundamentals, as additional barrels from Iraq and Kurdistan are expected to enter circulation, adding downward pressure on Brent.

Crude oil flows from Iraqi Kurdistan are expected to resume soon, as eight oil firms struck a deal with Iraq's federal government and Kurdistan Regional Government yesterday, Reuters reported.

The announcement has “paved the way for resumption of Kurdish crude exports from Ceyhan within days,” remarked VANDA Insights’ founder Vandana Hari.

By Gautamee Hazarika and Aparupa Mazumder

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