Fuel Switch Snapshot: Bunkering gets pricier in Singapore

All prices rise sharply in Singapore

LNG inches closer to VLSFO

Rotterdam’s B24-VLSFO premium over LNG widens

CHART: The dots represent bunker fuel prices adjusted for calorific contents to become VLSFO-equivalents, and with various estimated levels of EU ETS costs excluded (Rotterdam) and included (Rotterdam to non-EU port and Rotterdam to EU port). ENGINE, PRIMA Markets, NYMEX

Singapore's bunker fuel prices have increased across the board over the past week. Conventional fuel prices have climbed $17-20/mt higher, while bio-bunker blends have gained slightly less, at $12-17/mt. LNG has increased by $14/mt in the port.

The price gap between Rotterdam's LNG and VLSFO grades has narrowed in the past week. LNG is now only $2/mt cheaper than VLSFO in Rotterdam with estimated EU Allowance (EUA) costs for voyages between two EU ports added, down from $15/mt a week earlier. The price difference is wider without EUAs, at $8/mt, and has come down from $21/mt.

The B24-VLSFO premium over pure VLSFO has moved $2/mt lower in Rotterdam and $8/mt lower in Singapore.

VLSFO

Rotterdam’s VLSFO benchmark has increased by $7/mt in the past week. Steady availability of the grade in Rotterdam and the wider ARA region could explain its gains falling short of a $19/mt ($2.62/bbl) jump in front-month Brent futures.

Singapore's VLSFO benchmark has climbed $20/mt in the past week, mirroring Brent's rise.

A sharp tightening of VLSFO availability in the port has supported price gains. Most suppliers indicate lead times of 7-17 days for the grade, a significant increase from 2-11 days the week prior.

Biofuels

Rotterdam’s B24-VLSFO HBE price has been steadier in the past week, with only a $5/mt gain. Availability of bio-blended bunkers remains good in Rotterdam and the ARA hub, a source says. 

Singapore’s B24-VLSFO price has gained $12/mt in the past week. The bio-bunker price has gone up despite a $5/mt drop in the UCOME FOB China benchmark, according to PRIMA Markets.

“Lower offers last week of $960-980/t were still mostly met by limited demand, with other optimistic sellers still offering above $1,000/t in other areas of the country,” PRIMA said.

LNG

A $7/mt decline in Rotterdam’s LNG bunker price can be attributed to a drop in the front-month NYMEX Dutch TTF Natural Gas benchmark amid the abundant gas storage levels in European countries.

In contrast, Singapore’s LNG bunker price has jumped higher by $14/mt in the past week.

The price rise in Singapore is supported by higher prices in the Asian LNG market and the Japan/Korea Marker (JKM) price, as well as an extended outage at Chevron's Wheatstone LNG facility in Australia.

By Konica Bhatt

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