As bunker prices continue to head south, Bunkerspot Price Index (BPi) statistics show that price spreads between fuel grades and between the main bunkering hubs are not providing much clarity for fuel purchasers, with considerable volatility seen over the past week – but VLSFO seems to be proving its credentials as the ‘go to’ low sulphur fuel in terms of price at most ports.
The spread between high sulphur fuel oil (HSFO) and very low sulphur fuel oil (VLSFO) over the past week continues to provide little comfort for the owners of scrubber-equipped vessels. The differential between these grades was most marked at Rotterdam, with the spread standing at $100 today (30 March) (HSFO: $130 versus VLSFO: $230).
The differential is $80 at Fujairah and Singapore respectively, $63 at Panama and $48 at Houston.
There is also noticeable variation between VLSFO and low sulphur marine gasoil prices at these key ports. In Rotterdam, there is a $71 differential between these grades, with the price indication here for VLSFO standing at $230.
According to BPi, VLSFO at Houston is $5.00 below Rotterdam’s current price and the differential between VLFSO and MGO is a notable $112 (MGO: $337 versus VLSFO: $225).
At Panama, the VLSFO: MGO spread is $47, but the price competition between these grades seen at the beginning of the year in Singapore continues, with MGO currently at $285 per metric tonne and VLSFO, $265.
