Fuel Switch Snapshot: B100 discounts to conventionals widen in Rotterdam

Rotterdam B100 more than $700/mt cheaper than LSMGO

Otto MS LNG premium over VLSFO shrinks to $3/mt in Rotterdam

B100 discount to LSMGO narrows in Singapore

Rotterdam's B100 discounts to conventional fuels have widened sharply over the past week.

B100's discounts to VLSFO and HSFO have widened by $75-77/mt to $131-212/mt, while its discount to LSMGO has deepened by $168/mt to $726/mt. For dual-fuel vessels with diesel slow speed (diesel SS) engines, B100 has flipped to a $17/mt discount to LNG this week, coming from a $37/mt premium last week.

Bio-bunker premiums over liquefied biomethane (LBM) in Rotterdam have narrowed by $47-48/mt to $157-360/mt. B100 and LBM largely serve different vessel segments with distinct operational requirements and do not necessarily compete directly.

In Singapore, B100's discount to LSMGO has narrowed by $35/mt to $206/mt.

Rotterdam's LNG is now only $3/mt costlier than VLSFO for vessels with Otto medium speed (Otto MS) engines, down from a $22/mt premium last week.

For diesel SS vessels, LNG's discount to VLSFO has widened by $20/mt to $195/mt.

Singapore LNG discounts to LSMGO have narrowed by $41-42/mt to $379-478/mt.

Liquid fuels

Rotterdam's VLSFO and HSFO prices have risen by $57-59/mt and not kept up with a steep $120/mt ($16/bbl) increase in front-month ICE Brent Futures. LSMGO has climbed by a steeper $150/mt, but not quite kept up with a $179/mt rise in front-month ICE Gasoil futures.

In contrast, Rotterdam’s B100 has fallen by $18/mt over the period. Securing biofuel deliveries in the ARA region and around the Strait of Gibraltar requires around seven to 10 days of lead time, according to a trader.

In Singapore, HSFO and LSMGO prices have each gained $27/mt, while VLSFO has risen by a higher $71/mt. B100 has increased by $63/mt.

Most suppliers have now restarted biofuel supplies in Singapore, after pausing them early in the Middle East war to take advantage of the high VLSFO price premiums.

Liquid gases

Rotterdam LNG bunker prices have risen by $36-37/mt in the past week. LNG bunker prices have risen as Dutch TTF futures have shot up on tightening supply.

Rotterdam’s LBM prices have posted somewhat similar gains, up $29-30/mt. The port’s LNG-LBM spread has widened by $7/mt.

Singapore LNG prices have risen by $69/mt over the past week, largely driven by a rise in NYMEX Japan/Korea Marker (JKM) on the back of Middle East crisis and potential supply disruptions in Australia.

By Konica Bhatt

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