In the current energy and shipping landscape, notable developments have emerged in fuel pricing and market trends across key global hubs, Rotterdam and Singapore. This update delves into the dynamics of VLSFO, biofuels, and LNG, reflecting their price differentials and demand dynamics amid evolving market conditions.
Fuel Price Dynamics
Recent movements in prices for VLSFO and LNG have diverged significantly. VLSFO prices in Rotterdam and Singapore have risen following a $1.54/bbl increase in ICE Brent futures, compounded by estimated EU Allowance (EUA) costs. Conversely, LNG prices have declined in both hubs due to ample supply from Norway and subdued Asian market demand.
Biofuel Market Insights
Rotterdam and Singapore have witnessed notable increases in biofuel premiums, particularly for components like palm oil mill effluent methyl ester (POMEME). Despite these price hikes, demand for bio-bunker remains tepid in both regions, with most deliveries tied to term contracts rather than spot market activity.
LNG Market Trends
LNG bunker prices have experienced a reduction in Rotterdam and Singapore, with Rotterdam seeing a $14/mt drop attributed to high inventory levels and consistent supply from Norway. Singapore’s smaller $7/mt decrease is linked to weakening JKM gas benchmarks and subdued Asian market demand, as reported by Rystad Energy.
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Source: PORT TECHNOLOGY
