Fuel Switch Snapshot: Gas slide narrows LNG and LBM premiums over fuel oil
Liquefied biomethane’s (LBM) premiums over HSFO in Rotterdam have narrowed by $101-103/mt to $233-361/mt depending on engine type over the past week. LBM has fallen by $91-93/mt, while HSFO has gained $10/mt. LBM’s premiums over VLSFO have narrowed by $58-60/mt to $162-290/mt, and its discounts to LSMGO have widened by $26-28/mt to $323-452/mt depending on ...
Over the past week, the premium of liquefied biomethane (LBM) over heavy fuel oil (HSFO) in Rotterdam narrowed by $101-103/mt to $233-361/mt, depending on the engine type. LBM prices fell by $91-93/mt, while HSFO rose by $10/mt. The premiums of LBM over vlsFO narrowed by $58-60/mt to $162-290/mt, while discounts to LSMGO widened by $26-28/mt to $323-452/mt.
The premium of LBM over B100 narrowed by $94-96/mt to $122-251/mt. B100 prices rose by $4/mt over the same period. Engine-assessed FuelEU Maritime pooling values for LBM slipped by $3/mt. LNG premiums over vlsFO narrowed by $53-55/mt to $240-364/mt in Rotterdam and $52-53/mt to $342-404/mt in Singapore, as LNG fell further than vlsFO at both ports.
In Rotterdam, LNG discounts to LSMGO widened by $22-23/mt to $250-374/mt, as LNG fell more than LSMGO. In Singapore, LNG became a premium over LSMGO with LSMGO falling by $97/mt and LNG by $74/mt. The premium of LNG in Otto medium speed engines over LSMGO widened by $22/mt to $64/mt. Rotterdam's B100 premium over vlsFO widened by $37/mt to $40/mt, as vlsFO fell by $33/mt and B100 rose by $4/mt.
In Singapore, the premium widened by $21/mt to $340/mt, as vlsFO fell by $22/mt. B100's discount to LSMGO in Rotterdam narrowed by $68/mt to $574/mt, as LSMGO fell by $65/mt. In Singapore, B100 leveled with LSMGO, from a $96/mt discount. Rotterdam's B100 premium over HSFO narrowed by $6/mt to $111/mt. B30-VLSFO flipped from a $32/mt discount to a $2/mt premium, as vlsFO fell by $33/mt while the blend held steady.
Engine-assessed FuelEU Maritime pooling values for B100 dropped by $3/mt. OceanScore's FuelEU pooling index held at €108.60/mtCO2e ($124/mtCO2e) over the past week, down by $1/mtCO2e as the euro weakened. Rotterdam's HSFO price gained $10/mt, while VLSFO and LSMGO fell by $33-65/mt, with LSMGO down the most. Rotterdam's B100 rose by $4/mt, while B30-VLSFO held steady.
Prima Markets' Dutch ZRE A tickets fell by €15/mtCO2e ($19/mtCO2e) to €175/mtCO2e ($199/mtCO2e). Fuel availability in the ARA is tight, with lead times recommended at 5-7 days. Rotterdam's HSFO gained $10/mt, while VLSFO and LSMGO fell by $33-65/mt, LSMGO down the most. Singapore's HSFO rose by $4/mt, while VLSFO and LSMGO fell by $22-97/mt, LSMGO down the most.
Singapore's B100 slipped by $1/mt. Front-month ICE Brent futures rallied $4.06/bbl ($30/mt) to $104.81/bbl ($768/mt), while Dec26 EUA prices fell by $2.39/mtCO2e to $97.19/mtCO2e. Rotterdam's LNG prices fell by $86-88/mt depending on engine type, tracking a fall in the front-month Dutch TTF natural gas contract. IEA gas analyst Greg Molnár attributed the gas price fall to "the reemergence of negotiations on the Strait of Hormuz".
LBM prices fell by $91-93/mt in Rotterdam, and Singapore's LNG prices fell by $74-75/mt as JKM declined.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.