Fuel Switch Snapshot: FuelEU pooling values bounce back

Rotterdam's B100 and LBM discounts widen

Potential pooling values for B100 and LBM rise again

Singapore's B100 discount to LSMGO widens

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 from the past week.

FuelEU Maritime pooling values for B100 and liquefied biomethane (LBM) have clawed back some losses after falling by $106/mt and $147-172/mt, respectively, last week.

OceanScore's FuelEU pooling index has gained €17/mtCO2e ($20/mtCO2e) over the past week.

The rebound has lifted B100's potential pooling value by $46/mt to $650/mt. LBM's potential pooling value has increased by $64–74/mt to $902–1,057/mt on EU-EU voyages, depending on engine type and methane slip.

Sharp drops in Rotterdam's B100 and LBM prices have widened discounts to conventional fuels.

B100's discount to LSMGO has widened by $116/mt, while LBM's discount to LSMGO has widened by $95-105/mt. LBM's discount to LNG has widened by $130/mt.

Liquid fuels

Rotterdam's VLSFO price has remained mostly steady, gaining $4/mt over the week. HSFO and LSMGO benchmarks have gained $45/mt and $51/mt, respectively.

Bunker fuel availability of VLSFO and HSFO has tightened in the ARA bunker hub, with buyers now advised to enquire around 10 days ahead to get good coverage from suppliers, a trader told ENGINE.

Estimated lead times have doubled since last week. Suppliers are facing long loading delays at the terminals, the trader said.

LSMGO deliveries need a shorter notice of around six days, the trader added.

Rotterdam's B100 price has dropped $65/mt. Its discount to VLSFO has widened by $69/mt to $328/mt, and its discount to LSMGO has widened by $116/mt to $695/mt.

HSFO and VLSFO prices in Singapore have gained $23-59/mt, while LSMGO has jumped $115/mt over the week.

Availability has tightened sharply across all grades in Singapore. The earliest VLSFO delivery estimates have stretched to 12-14 days, HSFO lead times stand at 9-14 days, and LSMGO lead times have been extended to 8-9 days.

Singapore's B100 price has gained $34/mt over the week, leaving it at a $199/mt premium over VLSFO. On the other hand, B100's discount to LSMGO has widened by $81/mt to $124/mt.

Liquid gases

Rotterdam's LNG bunker prices have gained $75-86/mt over the week.

LNG has shifted to a $29/mt premium over VLSFO for vessels with Otto medium speed engines, from a $53/mt discount last week. For vessels with diesel slow speed engines, LNG's discount to VLSFO has narrowed by $71/mt to $191/mt.

LNG's discounts to LSMGO have narrowed by $24-35/mt to $338-558/mt.

Rotterdam's LBM price has dropped $44-55/mt. Its discounts to LNG have widened by $130/mt to $526-533/mt, depending on engine type.

Singapore’s LNG prices have gained $55-60/mt in the past week.

By Konica Bhatt

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