Rotterdam’s VLSFO-equivalent LNG bunker price has slightly corrected over the past week following its sharp rally in early August, reports engine online.
A sharp $27/mt decline in Rotterdam’s LSMGO price has shifted the benchmark to a $1/mt discount compared to the port’s LNG bunker price, down from a $15/mt premium in the past week.
Singapore’s LNG has regained its cost advantage over B24-VLSFO, but the gap remains narrow, with LNG just $30/mt more expensive than the bio-blend.
VLSFO
Rotterdam’s VLSFO benchmark has mostly followed Brent’s downward trend over the past week.
Prompt availability of VLSFO is good in Rotterdam and the wider ARA hub, according to a trader. This has pulled the VLSFO benchmark slightly lower (-$11/mt) compared to Brent’s drop (-$5/mt) over the past week.
The tight supply has supported the benchmark and pushed Singapore’s VLSFO price up by $12/mt over the past week, despite a decline in Brent futures.
Biofuels
Rotterdam’s B24-VLSFO HBE price has held steady in the past week. PRIMA assessed palm oil mill effluent methyl ester (POMEME) in the ARA at $1,332/mt on Friday, almost unchanged on the week.
Spot bio-bunker demand remains low in Singapore. Lead times for bio-bunker grades vary between 10-14 days among suppliers.
LNG
Rotterdam’s LNG bunker price has decreased by $10/mt over the past week, tracking the downward movement of the front-month NYMEX Dutch TTF Natural Gas contract.
The decline is attributed to improved natural gas production from Norway and high EU gas storage levels.
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Source: Engine.online
