Fuel Switch Snapshot: Flat pooling leaves fuel economics largely unchanged

Rotterdam B100 discount to LSMGO widens by $36/mt

Singapore B100 back to premium over LSMGO

Biofuel blending fears mostly overstated – Prima

All bunker prices described in the text below have been adjusted for calorific content to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and nonEU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and the average price of compliance surpluses we have picked up from the FuelEU pooling market over the past week.

Rotterdam's B100 price has edged $7/mt lower and its liquefied biomethane (LBM) price has dropped $1-2/mt over the past week.

With the OceanScore FuelEU pooling index unchanged, the EU compliance-adjusted benchmarks have been weighed down by a $1/mt rise in B100's pooling value, driven by a firmer euro.

B100's premium over VLSFO has widened by $6/mt to $47/mt.

LBM's discounts to VLSFO in Rotterdam have narrowed by $11-12/mt. Its discounts to LSMGO have widened by $30-31/mt over the same period.

Liquid fuels

Rotterdam's HSFO and LSMGO prices have gained $18-29/mt, while its VLSFO price has declined by $12/mt over the past week.

B100's discount to LSMGO in Rotterdam has widened by $36/mt to $453/mt.

Singapore's VLSFO and HSFO prices have gained $31/mt and $41/mt, respectively, while its LSMGO benchmark has declined by $14/mt.

The port's B100 price has edged $2/mt higher, flipping back to a $10/mt premium over LSMGO from a $6/mt discount the previous week. Meanwhile, its premium over VLSFO has narrowed by $29/mt to $260/mt.

The Dutch ZRE A price has remained unchanged over the past week. Prima Markets said no market participants were able to confirm any ZRE A trading activity during the week, reflecting illiquidity in the market.

One market participant told Prima that concerns over insufficient biofuel blending to meet this year's Dutch maritime quota were “likely exaggerated”.

Liquid gases

Rotterdam's LNG prices have gained $9-10/mt, depending on engine type. LNG's premiums over LBM have widened by $10/mt to $301-308/mt over the past week.

Singapore's LNG prices have declined by $24-25/mt over the same period.

By Konica Bhatt

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