- Brent futures and conventional fuel prices experienced declines this week, influenced by reduced Middle East supply concerns and renewed hopes for a ceasefire in Gaza.
- VLSFO and biofuel prices saw moderate drops across Rotterdam and Singapore, with tightening supply contributing to varying price movements in both ports.
- LNG prices exhibited contrasting trends, with prices falling in Rotterdam but increasing slightly in Singapore due to regional supply concerns.
The front-month ICE Brent futures contract has dropped by $5.98/bbl ($44/mt) over the past week as supply disruption fears eased due to renewed hopes for a ceasefire in Gaza, reports Engine.
Middle East Supply Concerns Ease Amid Gaza Ceasefire Hopes
The easing of concerns over supply disruptions in the Middle East has significantly affected Brent prices, leading to downward pressure on conventional fuel benchmarks.
Singapore’s VLSFO premium over Rotterdam currently stands at $44/mt, reflecting a $10/mt decrease over the last week. VLSFO prices in Rotterdam and Singapore have seen declines due to supply improvements.
LNG Loses Price Advantage Over LSMGO
LNG has lost its price advantage over LSMGO in both Rotterdam and Singapore, with the VLSFO-equivalent price now returning to a premium in both locations.
The discount to B24-VLSFO UCOME has also narrowed in Singapore.
Biofuels Market: Rotterdam vs Singapore
In the past week, Rotterdam’s B24-LSMGO HBE price dropped by $42/mt, outpacing the $14/mt decline in the B24-VLSFO HBE price.
Similarly, Singapore’s B24-LSMGO UCOME and B24-VLSFO UCOME prices both experienced significant declines.
Supply Tightness Continues to Affect VLSFO Pricing in Singapore
Despite the fall in VLSFO prices across Rotterdam and Singapore, securing prompt stems remains challenging, particularly in Singapore where the supply of the grade has stayed tight.
Biofuel prices in Rotterdam experienced significant drops, especially in B24-LSMGO HBE and B30-LSMGO HBE, driven by declines in ENGINE conventional LSMGO prices.
In contrast to Rotterdam’s LNG bunker price drop of $10/mt, Singapore’s LNG bunker price rose slightly by $1/mt due to concerns about potential gas supply constraints in Asia.
A $20/mt drop in China UCOME prices has further pressured both the B24-VLSFO UCOME and B24-LSMGO UCOME benchmarks, adding to the general downward trend in biofuels.
LNG Supply Concerns Rise in Asia, Affecting Singapore Prices
Rising concerns over potential gas supply constraints in Asia have contributed to a slight increase in Singapore’s LNG bunker price, contrasting the decline seen in Rotterdam.
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Source: Engine
