Biofuel Bunker Snapshot: Prices shoot up across the board
Biofuel blend prices rally with Brent
Rotterdam B30-VLSFO HBE at three-week high
GEFO Shipping bunkers its first B100
Rotterdam
Rotterdam’s B30 prices have surged higher in the past week, especially the port’s HBE-rebated B30-VLSFO price.
B30-VLSFO HBE rose above $700/mt last week and to its highest level in three weeks. It is now at a $70/mt discount to non-rebated B30-VLSFO UCOME in the ARA, and $117/mt lower than Gibraltar and Algeciras’ B30-VLSFO UCOME prices.
Both B30-VLSFO and B30-LSMGO prices have risen with stronger pure VLSFO and LSMGO prices in the past week, and these have in turn gained with Brent crude futures.
Brent rallied 8% higher in the week to its close on Friday. The US and EU’s new sanctions on Russian petroleum companies and shadow tankers sent Brent surging towards the end of the week.
Prima Markets’ POMEME CIF ARA barge price assessment is up by $23/mt on the week and has given further rise to B30 blends. At $1,532/mt, this is the highest it has been since July.
The HBE rebate for B30s has dropped by $3/mt and added an extra upward price push. Prima assesses the rebate to $188/mt now. It rose above $190/mt last week, which was its highest level this year.
Singapore
Singapore’s B24-VLSFO UCOME benchmark has gained $24/mt, while its B24-LSMGO UCOME price has shot up by $51/mt in the past week.
The gains have come amid a steady UCOME FOB China price assessed by Prima. This cargo price has held at $1,185/mt – a six-month high.
A $67/mt jump in Singapore’s LSMGO price has pulled B24-LSMGO UCOME up with it, while a less sharp $18/mt gain for VLSFO has given a smaller rise to B24-VLSFO UCOME.
Singapore’s B24-VLSFO UCOME is now $11/mt lower than Fujairah’s price for the equivalent grade.
Freight for UCOME FOB China cargoes from China to Singapore has come off by $0.50/mt to $16.75/mt. The drop has not made any material difference to the B24 bunker prices.
Other bio-bunker news
A GEFO Shipping vessel took on B100 for the first time. The Gioconda bunkered 100% UCOME and said FincoEnergies in Rotterdam was involved.
UCOME does not qualify for HBE rebates in the Netherlands and is typically priced considerably higher than biofuels produced from other HBE-qualifying feedstocks like POMEME, CNSL or food waste.
By Erik Hoffmann
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