Biofuel Bunker Snapshot: Surging VLSFO prices weigh on B30 premiums

Conventional VLSFO prices surge across ports

Fujairah deliveries remain limited due to conflict

Singapore suppliers pause biofuel deliveries

Europe

Iran has blocked oil cargo shipments through the Strait of Hormuz, which could limit future resupply to the ARA and other bunker locations. The impact has been more immediate on ARA bunker prices, which have been pushed up by rallying Brent crude futures.

Rotterdam’s B30-VLSFO (POMEME) price has increased by $126/mt in the past week.

The Dutch port’s conventional VLSFO price has made a sharper $196/mt jump over the same period. This has reduced the biofuel blend’s premium over VLSFO by $71/mt to $146/mt.

Antwerp’s B30-VLSFO (UCOME) price has increased by $112/mt, while the port’s fossil VLSFO price has surged $251/mt higher. Consequently, the blend’s price premium over VLSFO has almost halved to $182/mt.

Prima Markets-assessed ARA POMEME and UCOME barge prices have slipped $18/mt lower since last Friday.

Unlike Antwerp’s B30-VLSFO (UCOME) price, Rotterdam’s B30-VLSFO (POMEME) price is rebated by suppliers who can generate ZRE A tickets from advanced biofuel bunker sales. The price of these tickets has come down to €127.50/mtCO2e, from €145/mtCO2e last Friday.  

Rotterdam's B30-LSMGO grade has gained by $192/mt in the past week. The grade is $91/mt cheaper in Rotterdam than in Lisbon, narrowing from a $209/mt discount seen last week.

Bunkering B30-LSMGO in Lisbon now costs only $64/mt more than conventional LSMGO, even before the prices have been adjusted for EU regulations. This has narrowed down from a $270/mt premium seen last week.

A $280/mt increase in the Portuguese port’s pure LSMGO price has contributed to narrow the bio-blend's premium.

Elsewhere, Gibraltar’s B30-VLSFO (UCOME) price has risen by a smaller $32/mt since last week. Comparatively, its conventional VLSFO price has jumped $207/mt during the same period. Consequently, Gibraltar’s B30-VLSFO blend costs just $82/mt more than its VLSFO blend, compared to a much higher $257/mt premium seen last week.

Getting biofuel deliveries in the Gibraltar Strait and ARA may need around 10 days of lead time, a trader said

Asia

Singapore’s B30-VLSFO (UCOME) price has shot up by $333/mt in the past week. A $421/mt surge in the port’s conventional VLSFO price has provided support.

Notably, multiple suppliers in Singapore said they have paused biofuel supplies.

Suppliers could be prioritising sales of conventional VLSFO to take advantage of the grade’s high prices, a source said.

The Prima-assessed China UCOME cargo price, which is closely connected to Singapore’s biofuel bunker prices, has gained $40/mt since last week to $1,150/mt.

In Hong Kong, buyers are opting for pure VLSFO over B30-VLSFO as premiums are shrinking, a source told ENGINE.

Bunkering in Fujairah remains uncertain due to the war in the region. Several suppliers have ceased deliveries due to the cross-border airstrikes, a source said.

By Nachiket Tekawade

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