Rotterdam Biofuels Fall as Conventional Fuels Rally

B30-VLSFO now trades at a $27/mt discount to VLSFO in Rotterdam. This marks a reversal from a $58/mt premium seen recently. The price gap flipped in a single week. VLSFO prices rose by $33/mt during the same period. B30-VLSFO prices fell by $53/mt. B100 also saw a sharp decline. It moved from a $32/mt premium to a $45/mt discount over VLSFO. Both biofuel grades lost value while conventional liquid fuels gained.

The discount of B100 to LSMGO widened by $156/mt to reach $594/mt. The premium of B100 over HSFO narrowed by $107/mt to $55/mt. These shifts indicate a relative weakening of biofuels against other grades. Hellenic Shipping News reports that conventional prices in Rotterdam gained between $33/mt and $113/mt. LSMGO recorded the highest increase in that range. Fuel availability remains tight for prompt delivery. Buyers face lead times of 5-7 days for major grades.

Singapore Fuels Post Broad Gains

Every fuel grade in Singapore gained value over the past week. B100 prices rose by $54/mt. B30-VLSFO increased by $30/mt. The premium of B100 over VLSFO narrowed by $18/mt to $266/mt. Its discount to LSMGO widened by $34/mt to $61/mt. Conventional prices in the market rose between $27/mt and $88/mt. LSMGO again posted the largest gain. Market conditions tightened for VLSFO. Lead times extended to 9-16 days from 7-19 days previously.

HSFO lead times stretched to 8-16 days from 6-12 days. LSMGO lead times varied widely, ranging from 2 to 11 days. A market source attributed the VLSFO tightness to thinner supplier availability. Blending components are also in short supply. This contrasts with the Rotterdam market, where prompt delivery remains accessible within a week.

LNG and Biomethane Premiums Widen

LNG premiums over VLSFO in Rotterdam widened by $50-52/mt. The range now stands at $261-395/mt depending on engine type. Discounts to LSMGO widened by $28-30/mt to $154-288/mt. Liquefied biomethane premiums over HSFO increased by $12-14/mt. They now range from $243/mt to $380/mt. Its premiums over VLSFO widened by $43-45/mt to $143-280/mt. LBM prices gained $76-78/mt over the past week.

European gas prices rose due to tightening supply. Storage levels are low, and demand is stronger than expected. IEA analyst Greg Molnár cited these factors alongside geopolitical tension. Unplanned outages at Norway’s Kollsnes plant and the Troll field added to price support. Warmer near-term forecasts also contributed. EU underground storage is 66% full, up from 64% a week earlier. Slower storage injections further supported prices in the region.

Regulatory Costs and Market Drivers

Dutch ZRE A tickets gained €26.50/mtCO2e to reach €179/mtCO2e. This represents a weekly increase of $31/mtCO2e. The OceanScore FuelEU pooling index dropped by €0.60/mtCO2e. It now stands at €118.90/mtCO2e. This equates to $138/mtCO2e. B100 pooling value fell by $1/mt for EU voyages. It also fell by $1/mt for extra-EU voyages. LBM pooling value decreased by $1-2/mt. These regulatory credit changes slightly offset the underlying price movements.

Front-month ICE Brent futures rallied by $6.88/bbl. The price reached $98.19/bbl, or $720/mt. Dec26 EUA prices rose by $3.64/mtCO2e to $99.48/mtCO2e. These macro factors underpin the rise in conventional fuel costs. The divergence between biofuels and fossil fuels in Rotterdam highlights specific supply dynamics. Biofuels face distinct pricing pressures compared to the broader energy market.