Bunker fuel prices have moved in mixed directions, and HSFO is reported to be tight in both Houston and Panama.

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

Changes on the day to 03.00 CST (9.00 GMT) today:

• VLSFO prices up in Zona Comun ($13/mt), Los Angeles ($7/mt) and New York ($5/mt), unchanged in Houston, and down in Balboa ($16/mt)
• LSMGO prices up in Zona Comun ($17/mt), Los Angeles, Houston ($8/mt) and New York ($5/mt), and down in Balboa ($4/mt)
• HSFO prices up in Houston ($7/mt) and New York ($2/mt), and down in Balboa ($8/mt) and Los Angeles ($7/mt)

Houston’s HSFO price recorded the biggest gain amongst the ports in the past session. None the less, recent price movements have widened its discount to New York to $20/mt, from $6/mt a month earlier.

The port of Houston has continued to report slightly tight availability for HSFO, and recommended lead times stand at 7–8 days.

The market in Panama has also seen some tightness in HSFO availability. Recommended lead times have extended to 7–10 days, a local supplier informed ENGINE.

Balboa's HSFO and VLSFO price benchmarks have recorded the steepest plunges amongst the ports. The port's VLSFO price has declined more than its HSFO price, narrowing the port’s Hi5 spread to $17/mt today.

In the Atlantic, the hurricane season is coming to a close this month. Currently, there are no active hurricanes or tropical storms.

While the National Hurricane Center has continued to issue marine warnings in the Eastern Pacific region, no tropical cyclone activity is expected for the next seven days in the Central Pacific, Eastern Pacific, and the Atlantic.

Brent

The front-month ICE Brent contract has moved $0.45/bbl higher on the day, to trade at $64.56/bbl at 03.00 CST (9.00 GMT) today.

Upward pressure:

Recent sanctions on Russia’s energy sector have supported Brent’s price this week.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) had sanctioned Rosneft and Lukoil along with 34 of their subsidiaries in October.

Lukoil and Rosneft are Russia’s two biggest oil producers, according to market analysts. The sanctions have helped ease some market concerns about a potential supply glut anticipated in 2026.

“Given recent US sanctions on Russia, there is plenty of uncertainty as to the size of this surplus,” two analysts from ING Bank said. “If these sanctions disrupt Russian oil flows, it will eat into the expected surplus early next year,” they added.

Downward pressure:

Brent’s price has come under some downward pressure after the American Petroleum Institute (API) reported a sizeable increase in US crude stocks.

US crude oil inventories gained by 6.5 million bbls in the week ending 31 October, according to API estimates.

A build in US crude stocks typically indicates lower demand for oil and can cap Brent's price gains.

“Downward pressure [on Brent] continued in early morning trading today, following a bearish inventory report from the American Petroleum Institute (API),” ING Bank’s analysts noted.

The widely watched official data from the US Energy Information Administration (EIA) is scheduled for release later today.

By Gautamee Hazarika and Aparupa Mazumder

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