- The bunker fuel market experienced mixed fortunes last week, with prices for conventional fuels declining due to a drop in Brent crude, while bio-blend prices also followed suit.
- However, LNG bunker fuel prices in Rotterdam saw an uptick, influenced by supply concerns.
The sharp decrease of $2.40/bbl in front-month Brent futures led to a corresponding drop in conventional fuel prices. Rotterdam’s VLSFO benchmark experienced a milder decline compared to Singapore, likely due to slightly improved demand in the ARA region.
Biofuels Follow Suit
Bio-blend prices also dipped due to lower costs of both bio and conventional fuel components. The EU’s decision to impose tariffs on Chinese biodiesel imports is expected to impact bio-bunker blending availability in Europe, potentially leading to increased competition for bio-feedstocks in markets like Singapore.
LNG Bunker Prices Rise in Rotterdam
In contrast to the downward trend in conventional fuels, Rotterdam’s LNG bunker price surged by $22/mt, primarily driven by supply concerns at the Freeport LNG export terminal in the US. This facility is a key supplier of LNG to Europe, and recent disruptions have tightened supply and pushed up prices. Singapore’s LNG bunker price, however, declined due to a falling JKM price.
Market Outlook
The bunker fuel market continues to exhibit volatility, influenced by factors such as crude oil prices, biofuel availability, and LNG supply disruptions. While the recent drop in conventional fuel prices offers some relief to shipowners, the increasing cost of LNG in Rotterdam highlights the challenges of fuel diversification. The market is expected to remain dynamic in the coming weeks as these factors continue to evolve.
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Source: Ajot
