Fuel Switch Snapshot: LSMGO plunges in Singapore but remains above B100

LSMGO sharply down in Singapore

Singapore LNG discounts to LSMGO narrow

Singapore LNG bunker premium drops below $200/mt

Singapore's B100 discount to LSMGO has narrrowed by $178/mt to $544/mt in the past week for voyages into the EU. The price gap has narrowed as LSMGO is down by almost $300/mt.

To recap, Singapore's B100 price flipped from a premium to a rare discount to LSMGO in the second week of March, when gasoil prices surged after vessel traffic through the Strait of Hormuz was choked off.

For dual-fuel vessels bunkering in Singapore and sailing to the EU, B100 premiums over LNG have narrowed by $82-83/mt in the past week to $45-145/mt, depending on the vessel’s engine.

LNG discounts to LSMGO in Singapore have also narrowed in the past week, by more drastic $260-262/mt to $588-689/mt.

Rotterdam B100’s discount to its VLSFO has widened by $16/mt to $224/mt, and B100's discount to LSMGO has widened by $20/mt to $755/mt in the past week.

LNG price premiums over liquefied biomethane (LBM) sold at 0 gCO2e in Rotterdam have expanded by $9/mt to $394-400/mt.

Liquid fuels

Rotterdam’s conventional fuel prices have declined for a third straight week. The port’s HSFO price has inched $4/mt lower, while its VLSFO and LSMGO benchmarks have declined by $19-22/mt in the past week.

Rotterdam’s B100 price has dropped by $39/mt in the past week.

Bunkering biofuel in Rotterdam and Gibraltar require around 7-10 days of lead time, a trader said.

Singapore’s HSFO and VLSFO benchmarks have fallen by $44-88/mt over the past week. Its LSMGO price has dropped by a sharper $324/mt.

Singapore's B100 price has declined by $146/mt in the past week, and its premium over VLSFO has narrowed by $58/mt in the past week to $219/mt.

Liquid gases

Rotterdam’s LNG bunker price has declined for a third straight week amid a temporary Gulf war ceasefire and improved supply outlook. The port's LNG bunker prices have dropped by $24-26/mt in the past week, largely tracking a 3% drop in the front-month Dutch TTF Natural Gas contract.

Rotterdam's LBM bunker prices have followed suit, with $33-35/mt declines on the week.

Singapore’s LNG prices have declined by $63-64/mt, mostly due to a $48/mt drop in the port’s bunker premiums over the past week. The bunker premiums have eased to $194/mt this week.

By Konica Bhatt

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