In September 2024, the bunker fuel market is witnessing significant shifts, particularly in the pricing dynamics of LNG and alternative fuels. LNG prices have been approaching those of bio-blend fuels, with noticeable movements in both Rotterdam and Singapore. This report highlights key developments in the market for various fuel types, including LNG, VLSFO, and biofuels, alongside an overview of global pricing trends and regional supply conditions.
LNG vs. Bio-Blend Fuels
LNG pricing has shown remarkable movement, inching closer to bio-blend fuel prices. In Singapore, LNG prices are nearing those of B24-VLSFO, with only a $9/mt difference between B24-LSMGO and B24-VLSFO. Meanwhile, in Rotterdam, LNG prices have surged to a $120/mt premium over VLSFO, reflecting higher natural gas prices and a tighter supply in the region. This price premium is also felt in Singapore, where LNG costs over $100/mt more than LSMGO.
VLSFO Price Movements
VLSFO prices have seen notable declines in both Rotterdam and Singapore. Rotterdam’s VLSFO price has dropped by $23/mt, with steady availability but soft demand in the ARA hub. Singapore’s VLSFO benchmark has fallen by $19/mt, extending lead times for deliveries up to 11 days. Despite tight availability, prompt deliveries are priced significantly higher than non-prompt deliveries, further contributing to the market’s volatility.
Biofuel Market Trends
Bio-blend fuels, particularly B24-VLSFO and B24-LSMGO, have also experienced price adjustments. In Singapore, B24-VLSFO prices fell by $11/mt, while B24-LSMGO saw a more moderate drop of $4/mt. In Rotterdam, B24-VLSFO prices declined sharply by $26/mt, and B24-LSMGO prices dipped by $12/mt. The decline in palm oil mill effluent methyl ester (POMEME) prices further pressured biofuel pricing.
LNG Pricing Trends
LNG prices have risen in Rotterdam due to reduced natural gas flows from Norway and Russia. Conversely, Singapore has seen LNG prices decrease amid increased supply and lower demand. Despite the divergence between these regions, the overall trend highlights LNG’s growing role in the global fuel market.
Conclusion
The September 2024 bunker fuel market reveals an evolving landscape with LNG prices approaching those of bio-blend fuels, while VLSFO and biofuel prices continue to fluctuate in response to global supply and demand factors. Rotterdam and Singapore remain key hubs influencing these market dynamics as both regions navigate changes in availability, pricing, and regulatory pressures.
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Source: engine.online
