Most conventional bunker prices in the Americas have moved up, and HSFO availability is tight in Balboa.

IMAGE: Container ship docked in the Port of Balboa. Getty Images

Changes on the day from Friday to 07.00 CST (13.00 GMT) today:

• VLSFO prices up in Balboa ($18/mt), Houston ($10/mt) and New York ($2/mt), and down in New York ($1/mt)
• LSMGO prices up in Balboa ($36/mt), New York ($28/mt), Los Angeles ($18/mt) and Houston ($9/mt)
• HSFO prices up in Houston ($9/mt) and New York ($3/mt), and down in Balboa ($5/mt) and Los Angeles ($4/mt)

Balboa's LSMGO price has recorded the highest rise in the past session, and has moved to a $64/mt premium over Houston's. Its discount to Los Angeles has narrowed to $49/mt, and its discount to New York to $17/mt.

Balboa's VLSFO price has risen over the weekend, while its HSFO price has dropped. That has doubled its Hi5 spread to $34/mt.

LSMGO and VLSFO grades are readily available for bunkering in the Panamanian port, while HSFO is harder to come by, according to a trader.

New York has recorded the second-highest LSMGO prices gain among key ports. A higher-priced LSMGO stem has been fixed at $809/mt in support of the benchmark.

LSMGO can be supplied within 2-3 days in New York, a trader told ENGINE. As for HSFO and VLSFO, availability has remained steady, with recommended lead times of 5–7 days.

Brent

The front-month ICE Brent contract has gained $0.11/bbl on the day from Friday, to trade at $63.91/bbl at 07.00 CST (13.00 GMT) today.

Upward pressure:

Brent futures have gained some support following political developments in the US – the world’s largest oil consumer.

The US Senate has passed a funding agreement that could reopen the federal government, according to media reports. The resolution is aimed at ending the 40-day shutdown that has sidelined federal workers, Reuters reported.

Negotiators reached a deal over the weekend, paving the way for a compromise to fund the government.

“[Brent] crude futures opened higher… on news that a record-breaking US government shutdown was nearing an end,” remarked Vanda Insights’ founder Vandana Hari.

Downward pressure:

Brent crude has come under downward pressure after official drilling figures showed no decline in US oil rigs. The number of oil rigs remained unchanged over the week at 414, 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 has 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 December.

“Broader market sentiment remained sombre amid expectations of an oil glut,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

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

By Samantha Shaji and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online