Bunker fuel prices have shown mixed movements, and demand for HSFO and LSMGO has picked up in Balboa this week.

IMAGE: Container loading area in the port of Balboa. Getty Images.

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

• VLSFO prices up in Houston ($2/mt), unchanged in Balboa, and down in New York ($7/mt) and Zona Comun ($1/mt)
• LSMGO prices up in Balboa ($1/mt), and down in New York ($15/mt), Zona Comun ($6/mt), Los Angeles ($2/mt) and Houston ($1/mt)
• HSFO prices up in Balboa ($2/mt), unchanged in Los Angeles, and down in New York ($7/mt) and Houston ($6/mt)

Houston's VLSFO price has been the only one among the ports to gain in the past session. Nonetheless, the benchmark stands at a discount of $45/mt to New York, up from the $16/mt discount it held a month ago.

Houston reports good availability across all grades, with suppliers recommending lead times of 3–5 days for VLSFO and LSMGO. HSFO availability has improved significantly since last week, with expected lead times at 6–7 days.

Balboa has recorded price increases for HSFO and LSMGO, while the price for VLSFO remains unchanged. The VLSFO market at the port has reportedly softened slightly, while demand for the other two grades remains stronger.

VLSFO and LSMGO can be delivered in Balboa and Cristobal within 3–5 days, whereas HSFO requires 4–6 days this week.

The Atlantic hurricane season is underway, and the National Hurricane Center (NHC) has issued advisories for tropical storm Jerry in the Atlantic and Priscilla and Octave in the Eastern Pacific.

In Argentina's Zona Comun, prices for both VLSFO and LSMGO have dropped. The anchorage has good availability, and both grades can be delivered via barges with lead times of 5–7 days.

Brent

The front-month ICE Brent contract has gained $0.06/bbl on the day, trading at $66.28/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Market participants have interpreted the stalled progress on a Ukraine peace deal as an indication that sanctions on Russia—the world’s second-largest oil exporter—are likely to remain in place for now. This has added some upward pressure on Brent futures.

“There are clear upside risks to the oil market, with the most prominent being the ongoing threat of sanctions and secondary tariffs targeting Russia,” said Warren Patterson, head of commodity strategy at ING.

Downward pressure:

US President Donald Trump announced that Israel and Hamas have reached a long-awaited agreement for a Gaza ceasefire and the release of hostages, as part of a broader plan to end the two-year conflict in the Palestinian enclave, according to Reuters. The announcement has put downward pressure on oil prices.

“Crude futures had surrendered some of its gains after US President Donald Trump announced that Israel and Hamas had agreed to the first phase of a peace plan,” said Vandana Hari, founder of VANDA Insights.

Brent crude prices also faced additional pressure, following the release of the US Energy Information Administration’s (EIA) weekly oil inventory report, which showed that commercial US crude stocks rose by 3.7 million bbls to 420.3 million bbls for the week ending 3 October.

By Gautamee Hazarika and Tuhin Roy

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