Bunker fuel prices have moved in mixed directions, and VLSFO availability is tightening at the Port of Savannah.

IMAGE: Container ship leaving the Port of Houston at Morgan's Point. Getty Images

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

• VLSFO prices up in Balboa ($23/mt), Houston ($16/mt) and New York ($11/mt), and down in Los Angeles ($3/mt) and Zona Comun ($2/mt)
• LSMGO prices up in Balboa ($42/mt), New York ($16/mt), Zona Comun ($4/mt) and Houston ($3/mt), and down in Los Angeles ($3/mt)
• HSFO prices up in Houston ($11/mt), New York, Balboa ($7/mt), and unchanged in Los Angeles

Balboa’s LSMGO price has recorded the steepest jump in the past session.

The Panamanian port has reported weak demand over the past month, with bunker fuel sales dropping to the year’s lowest level in September. However, it has received a larger number of inquiries and is gaining momentum compared to previous weeks, a local supplier told ENGINE.

Availability at the port remains normal for VLSFO and LSMGO, with recommended lead times of 3–4 days. HSFO is slightly tight but can be supplied within a week.

On the US East Coast, VLSFO avails at the Port of Savannah is tight, and more than two suppliers expect resupply only by the beginning of November, a source said.

With its HSFO price recording the highest gains amongst the ports, Houston’s discount to New York has narrowed to $12/mt, down from the $30/mt discount seen a month ago.

Demand for all three grades in Houston has improved after the slowdown earlier this month, according to a source. Availability remains healthy across grades, with suppliers advising lead times of 4–5 days for VLSFO and LSMGO, and around 6–7 days for HSFO.

Brent

The front-month ICE Brent contract has gained $0.91/bbl on the day, trading at $61.38/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Geopolitical conflicts have put upward pressure on Brent crude this week, after two big Russian oil companies were sanctioned by the UK.

This comes as tensions take a toll following US President Donald Trump’s latest remarks on the war. Trump has urged Ukrainian President Volodymyr Zelensky to accept Russia’s terms in a tense meeting on Friday, Reuters reported, citing two people briefed on the discussion.

This major shift in stance by the US at such a critical juncture could prompt retaliatory moves from its European allies, including the EU and the UK, which may respond by imposing additional sanctions on Russian energy exports.

“We see Trump far more inclined to push for a rapprochement, however superficial, than to escalate the fight,” VANDA Insights’ founder Vandana Hari remarked. “The tail risk is a failed push that triggers fierce retaliating and a resurgent supply risk premium,” she added.

Downward pressure:

Brent crude’s price gains were capped amid growing market focus on signs of oversupply.

A Bloomberg report citing data from tanker tracking firm Vortexa showed more than 1 billion bbls of oil are in transit, adding some bearish sentiment to the market.

This is notably the highest level since 2020, the report added.

“Crude oil edged lower amid mounting evidence that the long-awaited surplus is finally starting to emerge,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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