The decrease in premiums related to LNG and LBM in the European energy markets, particularly in Rotterdam and Singapore, reflects recent fluctuations in fuel prices. These changes are specifically influenced by variations in heavy fuel oil prices and changes in demand for different fuels.
Analysis of LBM Premiums
LBM premiums compared to heavy fuel oil (HSFO) in Rotterdam have decreased by $101 to $103 per ton and are now varying between $233 and $361 per ton. Meanwhile, the price of LBM has decreased by $91 to $93 per ton, while HSFO has managed to increase by $10 per ton. LBM premiums compared to low viscosity oils (VLSFO) have also decreased by $58 to $60, reaching $162 to $290 per ton.
Changes in LNG Prices
In the Singapore market, LNG premiums compared to VLSFO have decreased by $53 to $55, reaching $240 to $364 per ton. In Rotterdam, LNG premiums compared to LSMGO have increased by $22 to $23, reaching $250 to $374 per ton. These changes indicate a decrease in general LNG prices and an increase in demand for other fuels.
LNG premiums in the Singapore market have particularly changed in slow-speed diesel engines (diesel SS), dropping from a premium of $21 per ton to a premium of $1. Meanwhile, LSMGO has faced a $97 decrease in its price. In medium-speed engines (Otto MS), LNG premiums compared to LSMGO have increased by $22, reaching $64 per ton.
Fluctuations in B100 Prices
In Rotterdam, B100 premiums compared to VLSFO have increased by $37, reaching $40 per ton. In Singapore, B100 premiums have risen to $340 per ton. Additionally, B100 premiums compared to LSMGO in Rotterdam have decreased by $68, reaching $574 per ton. These changes reflect general fluctuations in the fuel market and changes in demand for various fuels.
Overall, the energy market in Rotterdam and Singapore is facing challenges regarding prices and diverse premiums. These fluctuations may be due to changes in demand and supply of fossil fuels as well as global impacts. Buyers are advised to consider forecast delivery times of 5 to 7 days for prompt delivery in the ARA region.
