Bunker fuel prices have mostly tracked Brent’s decline, and gale winds could suspend operations in GOLA.

IMAGE: A group of tankers in port along the Houston Ship Channel, Texas. Getty Images

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

• VLSFO prices down in Houston ($17/mt), Zona Comun ($10/mt), New York ($8/mt), Balboa ($3/mt) and Los Angeles ($2/mt)
• LSMGO prices up in Balboa ($5/mt), New York ($3/mt) and Los Angeles ($1/mt), and down in Houston ($12/mt) and Zona Comun ($10/mt)
• HSFO prices down in Houston ($9/mt), Los Angeles ($8/mt), New York ($6/mt) and Balboa ($1/mt)

Houston’s VLSFO price has dipped the most across all grades in key bunkering hubs, while HSFO has declined by less to narrow the port’s Hi5 spread by $8/mt to $31/mt today.

The winter season has set in across the Houston area, and strong winds accompanying cold fronts have occasionally caused water levels in the Houston Ship Channel to drop below normal, a ship agent has said.

In the months ahead, terminal operators in the Houston area have been advised to consider potential impacts from fog-related closures, the agent added.

In the nearby Galveston Offshore Lightering Area (GOLA), weather conditions have turned extremely rough, with a gale in effect and winds forecast to exceed 40 knots from Tuesday night.

"The anchorage is expected to be shut down from 28–30 October. This could impact both delivery and reloading schedules," a bunker trader has told ENGINE.

LSMGO benchmarks have gained against the broader market trend in Balboa, New York and Los Angeles.

Balboa has recorded the greatest LSMGO gain of $5/mt in the past day, and stands at a premium of $57/mt over Colombia's Cartagena. But Balboa's LSMGO remains at discounts of $51/mt to Jamaica's Kingston and $147/mt to Trinidad OPL.

Hurricane Melissa has strengthened into a Category 5 storm. Jamaica is bracing for impact and all bunker operations have been suspended. Suppliers began to shut shop on 23 October. The hurricane is expected to cause catastrophic damage, bringing heavy rains, thunderstorms and landslides.

Brent

The front-month ICE Brent contract has moved $1.31/bbl lower on the day, to $64.76/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Progress in the US-China trade deal has put some upward pressure on Brent futures today. Both countries are expected to reach a preliminary ‘Framework Agreement’ later this week to ease tariff tensions.

US Treasury Secretary Scott Bessent said earlier that negotiators from both sides have agreed on a potential trade framework that eliminates the immediate threat of a 100% tariff escalation on Chinese imports. 

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

“The accord, which will be formalized during the upcoming Trump–Xi meeting in South Korea, represents a limited but meaningful de-escalation in a trade relationship that has repeatedly cycled through confrontation and temporary truces,” SPI Asset Management managing partner Stephen Innes noted.

Downward pressure:

Concerns of a potential supply glut in the global market have once again weighed on Brent’s price.

Oil has moved lower after a Bloomberg report suggested that OPEC+ may announce another monthly increase of 137,000 b/d for December.

Eight members of the OPEC+ coalition are scheduled to meet on 2 November to decide on December production policy.

Meanwhile, some OPEC members, including Kuwait and the UAE, “have suggested that any fall in Russia supply could be met with further increases,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Gautamee Hazarika and Aparupa Mazumder

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