Fuel Switch Snapshot: B100 premiums narrow for Singapore-EU voyages

Rotterdam B100 over $100/mt costlier than HSFO

Rotterdam LBM discounts to LSMGO widen

B100 premium over LSMGO drops to $39/mt in Singapore

All bunker prices described in the text below have been adjusted for calorific content to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and nonEU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and the average price of compliance surpluses we have picked up from the FuelEU pooling market over the past week.

Rotterdam B100's premium over HSFO has widened by a further $35/mt to $103/mt over the past week.

On the other hand, its discounts to VLSFO and LSMGO have widened by $8/mt and $25/mt to $26/mt and $266/mt, respectively.

Singapore's B100 has dropped slightly relative to conventional fuels. Its premiums over HSFO, VLSFO and LSMGO have narrowed by $16-25/mt over the past week to $39-408/mt.

LNG premiums over liquefied biomethane (LBM) in Rotterdam have widened by $15/mt to $440-447/mt.

Rotterdam's LBM discounts to LSMGO have widened by $56-58/mt to $595-796/mt, depending on the engine type.

Liquid fuels

Rotterdam's HSFO price has fallen by $41/mt over the past week. Its VLSFO has edged up by $2/mt, while its LSMGO price has increased by $19/mt.

The port's B100 has edged down by $7/mt. Dutch ZRE A ticket prices have remained unchanged for a third consecutive week amid a "lack of reported trades," Prima Markets has noted.

Singapore's conventional fuel prices have declined by $36-45/mt over the past week, while its B100 benchmark has fallen by a larger $61/mt.

The port's monthly B100 sales doubled from 6,500 mt in April to 13,000 mt in May, according to preliminary data from the Maritime and Port Authority of Singapore.

Liquid gases

Rotterdam's LNG prices have declined by $23-24/mt in the past week, driven largely by a 7% decline in LNG bunker premiums, which dropped from $134/mt to $125/mt. The front-month Dutch TTF Natural Gas contract has fallen by 2%, adding further downward pressure to LNG bunker prices.

Rotterdam’s LBM prices have fallen by $37-39/mt.

Singapore's LNG prices have edged up by $8-9/mt. Resurging tensions in the Middle East, a Qatari gas facility explosion and rising LNG demand in Asia have added upward pressure on the prices.

LNG sales in Singapore jumped from 42,000 mt in April to a record 70,000 mt in May.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online