- LNG bunker prices drop across Rotterdam and Singapore, with European LNG costs now discounted over LSMGO.
- Biofuel prices also see a reduction but remain volatile due to availability and supply pressures.
- VLSFO prices decrease amid a dip in global oil futures, yet demand tightens supplies in key regions.
Rotterdam’s LNG bunker price fell sharply, moving from a premium over LSMGO to a discount of $2/mt before EU Allowances (EUAs) for emissions. Factoring in EUAs, Rotterdam LNG prices hold an $8-14/mt discount. Singapore’s LNG, however, remains at a $30/mt premium over LSMGO, reducing to $24/mt with EUAs included, reports Engine.
Price Differences in Biofuel and LNG in Singapore
In Singapore, the LNG-biofuel price gap widened by $35/mt over the week, making LNG $67/mt cheaper than biofuel B24-VLSFO UCOME.
Meanwhile, Rotterdam’s LNG discount to B24-VLSFO HBE widened to $61/mt.
Comparing LNG and VLSFO Costs
Despite recent price reductions, LNG remains $107/mt more expensive than VLSFO in Rotterdam (excluding EUAs), and $96-101/mt with EUAs.
In Singapore, LNG holds a $93/mt premium over VLSFO, adjusting to $88/mt when EUAs are included.
VLSFO Price Movements
VLSFO prices have dropped, with Rotterdam decreasing by $19/mt and Singapore by $7/mt.
The decline follows a $22/mt dip in ICE Brent futures, although constrained availability in both ports limits the reduction, with Singapore’s demand further supporting the price.
Biofuel Market Adjustments
Biofuel B24-VLSFO HBE prices in Rotterdam dropped by $15/mt, with B24-LSMGO HBE similarly declining by $12/mt.
Singapore’s B24-LSMGO UCOME price rose by $29/mt, influenced by the higher underlying LSMGO price, while B24-VLSFO UCOME fell by $3/mt.
LNG Market and Future Expectations
Rotterdam’s LNG price dropped $31/mt, with Singapore’s falling $14/mt, attributed to increased supply expectations due to a European-Azerbaijan gas deal.
Seasonal drops in Asian demand and high inventory levels in Singapore further impacted LNG prices.
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Source: Engine
