In recent market developments, VLSFO prices have shown resilience against rising Brent crude values due to improved bunker availability in Rotterdam and Singapore, reports Engine.
Rotterdam
- LNG Premium: The premium of LNG over VLSFO has surged by $56/mt to $100/mt over the past week. Including estimated EU Allowance (EUA) costs, LNG is $88-94/mt more expensive than VLSFO.
- LNG vs. LSMGO: The price gap between LNG and LSMGO has narrowed significantly. LNG is now only $9/mt cheaper than LSMGO, a reduction of $66/mt. Including EUAs, LNG is $16-25/mt cheaper than LSMGO.
- VLSFO Prices: Rotterdam’s VLSFO price has remained relatively stable with a minor dip of $2/mt. Prompt availability has improved despite increased demand.
- Biofuels: Prices for bio-bunkers have been steady, with a slight decrease in B30 VLSFO HBE and B24-LSMGO HBE prices. The drop in palm oil mill effluent methyl ester (POMEME) has exerted downward pressure on these benchmarks.
- LNG Prices: Rotterdam’s LNG bunker price has surged by $64/mt, driven by a sharp rise in the Dutch TTF Natural Gas contract and increased delivery costs. The price increase is attributed to supply concerns and high demand due to unusually high temperatures in Europe.
Singapore
- LNG Premium: LNG is priced at a $55/mt premium over VLSFO without estimated EUA costs and $49/mt with EUAs.
- LNG vs. LSMGO: LNG is $16/mt cheaper than LSMGO in Singapore. Including EUAs, LNG remains competitively priced against LSMGO.
- VLSFO Prices: Singapore’s VLSFO price has decreased by $9/mt. Prompt availability remains tight, though lead times have improved to 9-13 days.
- Biofuels: The B24-VLSFO price has decreased by $4/mt, while the UCOME FOB China benchmark price has held steady.
- LNG Prices: Singapore’s LNG price has increased slightly by $2/mt, now only $11/mt higher than Rotterdam’s price.
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Source: Engine
