ENGINE: Global Bunker Fuel Market Update
Global bunker prices are moving in mixed directions today, while Brent prices have dropped further on the day.
Changes in the day to 08.00 GMT today:
VLSFO prices down in Singapore and Gibraltar ($1/mt), up in Fujairah ($1/mt), Rotterdam ($3/mt) and Houston ($7/mt)
LSMGO prices down in Gibraltar ($13/mt), Houston ($3/mt), Rotterdam ($2/mt), and up in Singapore ($5/mt) and Fujairah ($13/mt)
HSFO380 prices up in Houston, Rotterdam, Gibraltar and Singapore ($1/mt), and steady in Fujairah
Singapore’s Hi5 spread has inched down by $2/mt on the day to stand at $113/mt, and mostly maintaining last week’s levels.
VLSFO stems require up to nine days of lead time in the bunkering hub, while HSFO380 now requires 7-8 days in advance compared to 10 days needed for the high sulphur fuel grade in July. LSMGO is more readily available in Singapore with 4-5 days recommended.
HSFO380 continues to be tight in Fujairah as well with lead times stretching to nine days, while VLSFO and LSMGO are less tight in the UAE bunkering hub.
There are currently two vessels waiting to bunker in Gibraltar, as one supplier has been delayed due to barge schedules, according to a local port agency.
Gibraltar’s LSMGO price saw a sharp drop today on the back of a lower priced stem for 150-500 mt in the port. Availability for bunker fuels remains good in the Gibraltar straits, with lead times for HSFO380 stems slightly longer to ensure supply of the grade.
Brent
Front-month ICE Brent has inched down by another $0.50/bbl on the day to 08.00 GMT today, when it stood at $69.1/bbl.
Brent prices inched down for a second day, as concerns over Delta variant infections and oil demand destruction persist.
Infections of the variant have surged in China, Japan and the US leading to movement restrictions and lockdowns being reintroduced in several parts of the world.