Fuel Switch Snapshot: Biofuels turn red under global headwinds

Conventional fuels feel whiplash of Brent’s fall

Bio-bunker, LBM prices plunge in Rotterdam

Singapore B100 offers vary widely

All bunker prices mentioned below have been adjusted for calorific contents to make them VLSFO-equivalent. They have estimated EU compliance costs for EU–EU voyages included. These account for EU ETS costs and FuelEU Maritime penalties, and our estimated compliance surplus values for FuelEU pooling. Rotterdam's B100 and LBM prices also factor in Dutch HBE rebates for advanced liquid and gaseous biofuels sold in the Netherlands.

Front-month ICE Brent has plunged $9.45/bbl ($69/mt) lower over the past week, driven by steep US tariffs on China and other trading partners that have triggered a trade war. Brent’s dramatic decline has sent shockwaves through the bunker market, pulling conventional fuel prices sharply lower across major ports.

The price decline has also extended to other fuel alternatives like LNG, B100 and liquefied biomethane (LBM) in Rotterdam.

Rotterdam’s B100 price has dropped by $73/mt, flipping from an $8/mt premium over HSFO to a matching discount in the past week. The B100 discount to VLSFO has widened by $47/mt.

The B100 drop is linked to a decline in the ARA region’s palm oil mill effluent methyl ester (POMEME) prices. PRIMA assessed price for POMEME delivered to the ARA has seen a $75/mt fall, to $1,481/mt in the past week.

In contrast, Singapore’s B100 benchmark has risen by $76/mt.

ENGINE’s analysis shows that suppliers have been quoting B100 at higher levels in Singapore, pushing the benchmark higher over the past week. Current offers vary, however, with one supplier offering the grade $64/mt higher than another.

Liquid fuels

Rotterdam’s VLSFO benchmark has plunged $61/mt lower, closely tracking Brent’s downtrend.

Singapore’s benchmark has seen a smaller $40/mt decrease, with tight supply in the port helping to limit deeper losses.

Liquid gases

Rotterdam’s LNG bunker price has plummeted $62/mt lower, largely driven by a near 10% fall in the front-month Dutch TTF Natural Gas contract.

Market sentiment has been weighed down by concerns around rising US-EU trade tensions, robust Norwegian supply and muted European demand.

Singapore’s LNG price has declined by a much smaller $19/mt.

For dual-fuel shipowners, LBM now stands at a massive $276/mt discount to VLSFO in Rotterdam, when used in ships with diesel slow-speed engines with 0.2% methane slip. For ships equipped with Otto medium-speed engines, LBM is $141/mt cheaper than VLSFO.

By Konica Bhatt

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