Liquefied biomethane's premium over high-sulphur fuel oil in Rotterdam has narrowed by $101-103/mt to $233-361/mt depending on engine type, as LBM prices fell $91-93/mt while HSFO gained $10/mt over the past week.

The move marks the sharpest repricing among alternative fuels in the latest assessment round, driven by a broad slide in gas-linked values. Rotterdam LNG prices dropped $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 decline to the "reemergence of negotiations on the Strait of Hormuz".

Singapore LNG fell $74-75/mt depending on engine type as the front-month Japan/Korea Marker declined. "The decline followed indications that direct US-Iran discussions remained possible," oil and gas analysts at research firm BMI said.

For shipowners running dual-fuel LNG engines, the week's moves cut the cost gap to conventional fuels on both sides of the trade. LNG's premium over VLSFO narrowed by $53-55/mt to $240-364/mt in Rotterdam and by $52-53/mt to $342-404/mt in Singapore, depending on engine type, as LNG fell further than VLSFO at both ports.

Rotterdam's LNG discounts to LSMGO widened by $22-23/mt to $250-374/mt. In Singapore, the picture split by engine: LNG burnt in diesel slow speed engines flipped from a $21/mt discount to LSMGO to a $1/mt premium, as LSMGO fell $97/mt against a $74/mt drop in LNG. The premium of LNG burnt in Otto medium speed engines over LSMGO widened by $22/mt to $64/mt.

Biofuel spreads compress

LBM's premiums over VLSFO narrowed by $58-60/mt to $162-290/mt, while its discounts to LSMGO widened by $26-28/mt to $323-452/mt, as the biofuel fell further than both conventional grades. LBM's premium over B100 narrowed by $94-96/mt to $122-251/mt, with B100 edging up $4/mt.

ENGINE-assessed FuelEU Maritime pooling values for LBM slipped by $3/mt for both engine types, cushioning part of LBM's fall.

B100 spreads also shifted materially. In Rotterdam, B100's premium over VLSFO widened by $37/mt to $40/mt, as VLSFO fell $33/mt while B100 edged up $4/mt. In Singapore, the premium widened by $21/mt to $340/mt on a $22/mt VLSFO decline. Rotterdam's B100 discount to LSMGO narrowed by $68/mt to $574/mt, as LSMGO fell $65/mt. In Singapore, B100 drew level with LSMGO from a $96/mt discount, with LSMGO down $97/mt and B100 slipping just $1/mt. Singapore's B100 discounts to LNG narrowed by $73-74/mt to $1-64/mt depending on engine type.

Rotterdam's B100 premium over HSFO narrowed by $6/mt to $111/mt.

B30-VLSFO flipped from a $32/mt discount to VLSFO to a $2/mt premium, as VLSFO fell $33/mt while the blend held steady — a signal that blenders can now price the 30% bio-component blend at parity with straight VLSFO in Rotterdam.

FuelEU Maritime pooling values for B100 dropped by $3/mt in Rotterdam on a weaker euro, adding to B100's relative rise. OceanScore's FuelEU pooling index held at €108.60/mtCO2e ($124/mtCO2e), with its dollar value down by $1/mtCO2e.

Conventional fuel picture

Rotterdam's HSFO gained $10/mt, while VLSFO and LSMGO fell $33-65/mt, with LSMGO down the most. Singapore's HSFO gained $4/mt, with VLSFO and LSMGO down $22-97/mt. Singapore's B100 slipped $1/mt.

Prima Markets' Dutch ZRE A tickets fell by €15/mtCO2e ($19/mtCO2e) to €175/mtCO2e ($199/mtCO2e).

Availability is tightening. In the ARA region, fuel supply is tight for prompt delivery dates, and a trader recommended lead times of 5-7 days. In Singapore, recommended VLSFO lead times stretch to 13-17 days, as most suppliers hold low stocks and cargo arrivals linked to the Middle East conflict have been delayed, according to a Singapore-based source.

On the wider energy complex, front-month ICE Brent futures rallied $4.06/bbl ($30/mt) to $104.81/bbl ($768/mt), while Dec26 EUA prices fell $2.39/mtCO2e to $97.19/mtCO2e.

With gas prices hingeing on Middle East diplomacy and Singapore delivery windows stretching toward three weeks, shippers planning LNG or biofuel bunkering in the weeks ahead face both softer fuel spreads and longer procurement timelines.