The front-month ICE Brent contract has declined by $1.50/bbl ($11/mt), which has weighed on conventional fuel prices over the past week.
The VLSFO-equivalent LNG bunker price in Rotterdam is $34/mt cheaper than its VLSFO. When accounting for the estimated EU Allowance (EUA) costs, LNG costs $40-46/mt less than VLSFO.
Conversely, LNG is priced $16/mt higher than VLSFO in Singapore with estimated EUA costs added, and $22/mt without.
VLSFO
Rotterdam’s VLSFO price has mostly followed Brent’s movement over the past week.
Prompt VLSFO availability has tightened in Rotterdam and in the wider ARA hub due to bunker barge loading delays at some oil terminals, according to a trader. This has resulted in product shortages for some suppliers and prevented Rotterdam’s VLSFO price from falling further.
Singapore’s VLSFO price has remained stable, with only a $2/mt decline over the past week.
Biofuels
Rotterdam’s B30-VLSFO HBE price has declined by $13/mt in the past week, while its B30-LSMGO HBE price has dropped by a greater $18/mt.
The two benchmarks have declined despite a steady price for palm oil mill effluent methyl ester (POMEME). PRIMA assessed the POMEME price in the ARA at $1,383/mt on Friday, unchanged from the previous week.
PRIMA assessed the UCOME FOB China benchmark at $990/mt on Friday, unchanged from the previous week. The benchmark has remained steady even after the European Commission (EC) announced provisional tariffs on EU imports of Chinese biodiesel.
LNG
Rotterdam’s LNG price has inched lower by $2/mt over the past week.
Singapore’s LNG benchmark has increased by $4/mt over the past week. This slight uptick is attributed to increased buying activity in the cargo spot market, where LNG is purchased for immediate delivery rather than through long-term supply contracts.
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Source: Engine.online
