Bunker fuel prices have moved in mixed directions, and bunker operations in Jamaica have been suspended by Hurricane Melissa.

IMAGE: Aerial view of the Houston Ship Channel. Port of Houston

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

• VLSFO prices unchanged in Houston, and down in Los Angeles ($44/mt), Zona Comun ($10/mt), New York ($3/mt) and Balboa ($2/mt)
• LSMGO prices up in New York, Balboa ($12/mt) and Houston ($7/mt), and down in Zona Comun ($70/mt) and Los Angeles ($13/mt)
• HSFO prices up in Los Angeles ($13/mt), New York ($11/mt) and Houston ($2/mt), and down in Balboa ($1/mt)

Zona Comun’s LSMGO price benchmark has recorded a sharp decline in the past session. Nonetheless, it continues to hold a notable premium of $167/mt over the nearby bunkering hub of Rio Grande in Brazil.

LSMGO availability is normal in Zona Comun and the grade can be supplied by barge with a lead time of 5–7 days this week, a local supplier said.

The National Hurricane Center has issued advisories for Hurricane Melissa, which has strengthened into a Category 5 hurricane. Category 5 is the highest level on the Saffir–Simpson scale, with sustained winds exceeding 250 km/hour.

The bunker port most likely to be affected is Kingston in Jamaica, where all operations have been suspended, a bunker trader has told ENGINE.

"No word yet on when it will reopen. The storm is moving very slowly, so there’s potential for extensive damage. All supply ships have left the port and moved to a safer location," the trader said.

Meanwhile, Houston’s VLSFO price has remained unchanged, while prices for the grade in other ports have all declined.

Houston's Hi5 spread has recovered from the slim $12/mt noted last Wednesday to $39/mt today. But the spread remains thin compared to New York’s $71/mt and Los Angeles’ $85/mt.

Brent

The front-month ICE Brent contract has moved $0.04/bbl lower on the day from Friday, to $66.07/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Following a sanction-driven rally in the oil market last week, Brent crude has gained further upward momentum after officials from Washington and Beijing sketched out a trade-deal framework, easing US tariff fears and boosting demand growth expectations.

The news has alleviated fears of additional export curbs between the world's two biggest oil consumers that could depress global economic growth, Reuters reported.

“Positive developments in US-China trade talks over the weekend provided a boost to risk assets, including large parts of the commodities complex,” two analysts from ING Bank noted.

US Treasury Secretary Scott Bessent said in an interview with CBS that additional tariffs on China that were supposed to come into effect on 1 November are "effectively off the table" after a "very good two-day meeting" with Beijing's top negotiator.

US President Donald Trump and his Chinese counterpart Xi Jinping are scheduled to meet in South Korea on Thursday.

Downward pressure:

Oil has moved lower after official drilling figures showed an increase in US oil rigs. The total number of oil rigs increased by two over the week to 420, according to Baker Hughes.

The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.

Moreover, supply hikes by OPEC+ producers have also weighed on Brent’s price. Earlier this month, eight members of the group agreed to collectively increase their production by another 137,000 b/d in November.

In an oversupplied market, any signal of increased future supply can put downward pressure on Brent’s price.

By Gautamee Hazarika and Aparupa Mazumder

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