Fuel prices have had mixed movements, and Hurricane Melissa has swept across Jamaica and left widespread damage.

IMAGE: Kingston Harbour in Jamaica is the seventh largest natural harbour in the world. Getty Images

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

• VLSFO prices up in Zona Comun ($10/mt), Houston ($4/mt) and Balboa ($1/mt), and down in New York ($7/mt) and Los Angeles ($2/mt)
• LSMGO prices up in Houston ($11/mt), Zona Comun ($6/mt), Balboa ($4/mt) and Los Angeles ($3/mt), and down in New York ($16/mt)
• HSFO prices up in Balboa ($6/mt), Los Angeles ($4/mt) and Houston ($1/mt), and down in New York ($19/mt)

LSMGO prices have increased in all the bunker locations above, except in New York. A lower-priced 50-150 mt LSMGO has been fixed in New York today and put downward pressure on its benchmark.

New York's HSFO price has declined after a lower-priced 150-500 mt HSFO stem was fixed at $416/mt.

Weather conditions are not forecast to be conducive for smooth bunker operations in New York today and tomorrow. A gale watch is in effect from the morning until the evening tomorrow.

Additionally, a small craft advisory is in effect in New York. Wave heights are forecast to reach up to 5 feet until late tonight, which could affect vessel movements and cause barge delays at an anchorage, a source said.

In the Atlantic, Hurricane Melissa has ripped across Jamaica, causing widespread damage. Bunkering has been suspended for days and it is unclear when it can get up and running again. The status of the Kingston container terminal, or when it is expected to resume operations, remains unclear.

"As a result, the ripple impact on other transshipment hubs in the region will continue for a while longer," Lars Jensen, chief executive of Vespucci Maritime commented on the hurricane in Jamaica. He says ships may be forced to either wait for Kingston to reopen or shift operations to alternative locations such as Panama, Cartagena, Caucedo or Freeport. This could increase congestion in other ports.

Brent

The front-month ICE Brent contract has moved $0.32/bbl lower on the day, to $64.44/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has found some support after the American Petroleum Institute (API) reported a draw in US crude stocks.

US crude oil inventories declined by 4 million bbls in the week ending 24 October, according to the API estimates cited by Trading Economics.

Market analysts had expected a smaller draw of 2.9 million bbls. A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

“The American Petroleum Institute reported an across-the-board plunge in US crude as well as product inventories,” VANDA Insights’ Vandana Hari wrote.

Downward pressure:

Brent’s price has lost momentum ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting, which is set to conclude later today.

Market participants are closely watching the meeting as they await the US central bank’s decision on a potential interest rate cut.

“This meeting isn’t about whether [Fed chairman] Jerome Powell cuts but rather how many [cuts are planned],” remarked SPI Asset Management managing partner Stephen Innes.

The FOMC is scheduled to meet again in December to discuss further interest rate reductions.

Higher interest rates in the US can dampen demand growth and make dollar-denominated commodities like oil more expensive for holders of other currencies.

By Gautamee Hazarika and Aparupa Mazumder

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