Fuel Switch Snapshot: Pooling party cools for B100 and LBM
Rotterdam B100 flips to $110/mt premium over VLSFO
Singapore B100 loses cost edge against LSMGO
LBM swings to $25/mt premium over VLSFO for Otto MS engines
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.
OceanScore's FuelEU pooling price index has fallen to €131.75/mtCO2e ($150/mtCO2e), down by around €28/mtCO2e ($32/mtCO2e) over the past week.
Over the same period, ENGINE-assessed FuelEU Maritime pooling values for B100 and liquefied biomethane (LBM) on EU-EU voyages have decreased by $86/mt and $120-140/mt, respectively.
The retreat has been steeper over the past month, but most of it has come in the past week.
OceanScore's FuelEU pooling price index has slumped by €40/mtCO2e ($46/mtCO2e) since 29 June, with roughly 70% of that fall coming in the past week.
The drop in the underlying benchmark has cut B100's potential pooling value by $123/mt in the past month to $405/mt.
LBM has been hit even harder, with its pooling values sliding by $171-201/mt over the same period to $562-659/mt.
Liquid fuels
The decline in B100's pooling value for EU-EU voyages has hurt the fuel's affordability in Rotterdam, where its bunker price has climbed by $144/mt over the past week.
As a result, B100 has moved to a $110/mt premium over Rotterdam's VLSFO from a $105/mt discount seen the week before.
B100's discount to LSMGO has narrowed by $201/mt to $340/mt over the past week, with a $57/mt decline in Rotterdam's LSMGO price adding to the contraction.
Singapore's HSFO and VLSFO benchmarks have edged down by $6-7/mt, while its LSMGO price has declined by $17/mt over the past week.
The port’s B100 benchmark has gained $91/mt, driven by a rise in the outright price and a $43/mt drop in B100’s pooling value for EU-nonEU voyages. Singapore’s B100 has shifted to a $2/mt premium over its LSMGO, from a $106/mt discount in the prior week.
Liquid gases
The decline in LBM's pooling values for EU-EU voyages has erased the fuel's price advantage over VLSFO in Rotterdam for dual-fuel vessels with Otto medium-speed (Otto MS) engines.
LBM has flipped to a $25/mt premium over VLSFO for vessels with Otto MS engines, from a $203/mt discount a week earlier.
For vessels with diesel slow-speed (diesel SS) engines, LBM maintains a discount to VLSFO in Rotterdam. But that discount has narrowed by $248/mt over the past week to $149/mt.
LBM discounts to LSMGO in Rotterdam have also narrowed by $215-234/mt over the past week to $424-598/mt, depending on the engine type.
Its discounts to LNG have narrowed by $114-115/mt over the past week to $289-297/mt.
By Konica Bhatt
Please get in touch with comments or additional info to news@engine.online
