Houston bunker market steadies but operational disruptions continue

Higher crude prices have pushed bunker fuel levels up in Houston, while seasonal fog in the US Gulf Coast continues to affect port operations.

IMAGE: A container ship setting sail from the Port of Houston at Morgan's Point. Getty Images.

Bunker fuel prices in Houston have continued to rise over the past week in response to escalating geopolitical tensions in the Middle East.

In the past week, VLSFO and LSMGO prices briefly jumped above the $200/mt mark, tracking Brent’s upward movement, before stabilising somewhat in recent days.

LSMGO prices have remained above the $1,000/mt mark since 6 March in Houston and continue to do so across other Americas ports, including New York, Vancouver, Los Angeles, Seattle and Balboa.

Despite the recent rise, traders expect the market to correct. "Prices are expected to come down as the market adjusts," a trader tells ENGINE.

Over the past 24 hours, VLSFO stems in Houston have been trading at around $670/mt, down from about $730/mt recorded on 10 March, indicating a slight easing after the earlier spike.

Additionally, bunkering operations in Houston are being affected by seasonal fog across the US Gulf Coast, a source said.

Intermittent channel closures caused by the fog have led to operational delays, including disruptions to barge transits and occasional suspensions of port operations, preventing bunker barges from loading and supplying fuel.

The port is currently open to both inbound and outbound traffic, and bunker deliveries are ongoing, a source told ENGINE.

By Gautamee Hazarika

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