Fuel Switch Snapshot: Pooling slump erodes LBM’s compliance edge
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 ...
Fuel switching compliance costs have eroded LBM's competitive edge, according to ENGINE's latest fuel market snapshot. LBM's potential pooling values for EU-EU voyages dropped by $74-87/mt, while B100's potential pooling value for the same voyages fell by $72/mt. Non-EU-EU voyage prices saw a smaller $36/mt reduction in B100's potential pooling value, leading to a $30/mt spike in B100 prices in Singapore over the past week.
The decline in FuelEU pooling values continues a downward trend flagged by OceanScore in September. After cutting surplus offers during the summer, sellers faced aggressive pricing due to oversupply. Rotterdam LBM's premiums over VLSFO widened by $167-176/mt, while discounts to LSMGO narrowed by $103-112/mt. LBM's premiums over B100 widened by $250-259/mt.
Rotterdam's B100 flipped from a $90/mt premium over HSFO to a $24/mt discount. B100's discount to VLSFO and LSMGO widened significantly. Diesel slow speed engines experienced a $38-42/mt premium in LBM prices, with potential pooling values dropping by $74-87/mt.
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.