Bunker prices have mostly tracked Brent up, and deliveries have resumed in GOLA.

IMAGE: A tugboat in the Houston area. Getty Images

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

• VLSFO prices up in Houston ($10/mt), Zona Comun ($7/mt), Los Angeles, Balboa ($6/mt) and New York ($2/mt)
• LSMGO prices up in Zona Comun ($14/mt), New York ($12/mt), Houston ($11/mt) and Los Angeles ($10/mt), and down in Balboa ($16/mt)
• HSFO prices up in New York, Los Angeles ($6/mt) and Houston ($4/mt), and down in Balboa ($2/mt)

Balboa’s LSMGO price has defied the general market direction by falling. A lower-priced 50–150 mt stem fixed today has put downward pressure on the benchmark.

Balboa and Cristobal have steady availability of VLSFO and LSMGO. Lead times of 5–7 days are recommended. HSFO can be delivered in 7–8 days.

VLSFO has gained the most in Houston in the past day. But over the past month, Houston's price has dropped from a $23/mt discount to New York to a $48/mt discount.

Bunker demand in Houston has remained stable, though HSFO is in short supply this week, with lead times currently at 7–8 days. VLSFO and LSMGO can be supplied within 5–6 days of lead time.

Bunker operations have resumed in the Galveston Offshore Lightering Area (GOLA).

The Port of Los Angeles has seen price increases across all three grades. The West Coast port has normal availability, with lead times of 5–7 days advised.

The US and China have reportedly suspended port fee hikes and vessel charges against one another for a year. This marks a temporary easing of trade tensions between the two countries.

"This suspension could boost West Coast calls in the near term, but most players remain cautious given the one-year limit," a market source said.

Brent

The front-month ICE Brent contract has moved $0.95/bbl higher on the day, to $65.17/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent’s price has gained some support following the meeting between US President Donald Trump and Chinese President Xi Jinping. The two leaders convened in South Korea yesterday to discuss ways to ease trade tensions and bolster economic cooperation between the two nations.

Market participants are now assessing the impact of this meeting.

Earlier this week, US Treasury Secretary Scott Bessent said that US and Chinese negotiators had reached a positive framework, removing the immediate need of a 100% tariff escalation on Chinese imports.

“There was also hope that China would agree to purchases of US oil & gas as part of a broader US-China deal,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes. 

Downward pressure:

The OPEC+ alliance is set to hold a virtual meeting on Sunday to decide on production quotas for December. Market participants anticipate the group will approve another supply hike of 137,000 b/d, potentially exerting further downward pressure on Brent’s price.

“OPEC+ is scheduled to meet this weekend, with the expectation that the group will agree on an output hike for December,” two analysts from ING Bank said.

The uncertainty surrounding sanctions on Russian energy exports may support OPEC’s decision to raise output, according to market analysts.

“The move [OPEC’s production hike for December] will only reinforce the bearish outlook for the market, adding to the substantial surplus expected through 2026,” ING Bank’s analysts added.

By Gautamee Hazarika and Aparupa Mazumder

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