Fuel Switch Snapshot: LSMGO drop squeezes B100, LBM spreads

Rott B100 discount to LSMGO narrows to $700/mt

Singapore B100-LSMGO spread down to $98/mt

Traders advise 7–10 days for ARA bio-bunker deliveries

LSMGO prices have tumbled over the past week, sharply narrowing B100 and LNG discounts to the fuel in both Rotterdam and Singapore, and LBM discounts in Rotterdam.

Rotterdam’s B100 discount to LSMGO has shrunk by $162/mt to $700/mt.

LNG’s discount to LSMGO has tightened by $78/mt to $373/mt for vessels with Otto medium-speed engines, and by $75/mt to $609/mt for vessels with diesel slow-speed engines.

LBM discounts to LSMGO in Rotterdam have also narrowed by $61–64/mt to $944–1,187/mt, depending on engine type.

In Singapore, B100’s discount to LSMGO has narrowed by a slightly smaller $143/mt to $98/mt. LNG discounts have tightened by $105–107/mt to $219–337/mt, depending on the vessel’s engine type.

Liquid fuels

Rotterdam’s LSMGO price has plunged by $120/mt in the past week, closely following a $111/mt drop in the ICE gasoil low-sulphur futures contract.

Meanwhile, Rotterdam’s B100 price has climbed by $43/mt over the same period.

B100’s FuelEU Maritime pooling value has remained broadly stable, edging up by $6/mt over the week, while Dutch ZRE-A ticket values have remained flat.

Dutch ZRE-As are trading in the range of €125-130/mtCO2e, with one source indicating an offer at €135/mtCO2e, Ulrich Arnheiter, market analyst at Prima Markets told ENGINE.

Securing biofuel deliveries, including B100, in the ARA requires around 7–10 days of lead time, a trader said.

Singapore’s LSMGO price has almost mirrored Rotterdam’s fall, dropping by $122/mt over the past week. The port’s B100 price has risen by $20/mt.

Liquid gases

Rotterdam’s LNG bunker benchmarks have fallen by $41–45/mt.

Its LBM prices have slipped by $55–59/mt in the past week, with a $7–8/mt rise in the FuelEU Maritime pooling values for LBM slightly boosting the fuel’s appeal for EU–EU voyages.

Rotterdam's LBM now stands at a $571-578/mt discount to LNG, slightly up from last week.

Singapore’s LNG bunker prices have dropped by $16–17/mt in the past week, depending on vessel engine type.

By Konica Bhatt

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