Business

Bunker prices up 25% in 30 days on the back of Covid-19 vaccines and OPEC+ support

VLSFO prices hit levels not seen since early March, and in Singapore rise from $305/ton to around $380/ton (up 25%) in this very short period, says Integr8 Fuels.

Published

6 years ago

December 4, 2020

Admin

Integr8 Fuels, the bunker trading and brokerage arm of Navig8, on Thursday (3 December) published an analysis on the market forces behind the rise in bunker prices after OPEC+’s well received announcement to extend existing supply cutbacks as well as successful Covid-19 vaccine trials:

VLSFO prices have risen by $75/ton in just 30 days; the previous talk about a Covid-19 vaccine and a corresponding sharp rise in oil prices has now become a reality. In the past few weeks, we have had the very big news of 3 successful Covid-19 vaccine trials, with the corresponding jump in prices. There has been further price support with positive comments on the OPEC+ group extending their current cutbacks into 2021, and this has now finally been agreed with only a 0.5 million b/d increase in January (the original plan was to raise production quotas by 2 million b/d from January 2021).

The net result is that in past 30 days we have moved from a bearish position, when a second Covid wave was dominating the news, to now, where the ‘imminent’ implementation of vaccine programs is seen as the path to significant gains in oil demand. This has seen VLSFO prices hit levels not seen since in early March, and in Singapore rise from $305/ton to around $380/ton (up 25%) in this very short period.

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At the same time forward curves have jumped higher, although they remain extremely flat through the next 18 months. The Singapore VLSFO curve at the start of November was a clear reflection of the near-term bearish concerns from the second covid-19 wave, showing a drop in December and only a gradual uplift through the outlook period. The recent news on vaccines had an immediate bullish impact on prices and now for the earlier part of next year, the VLSFO forward curve in Singapore is almost $60/ton higher than it was four weeks ago. Even looking as far out as 2022, the curve is still more than $40/ton above what it was showing at the start of November.

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Another aspect to the price rise has been a widening in the VLSFO/HSFO spread. Differentials tend to widen as prices rise (and narrow as prices fall), and this has happened with this latest price increase. Although the differential between the two bunker grades is still very narrow by historical standards, the VLSFO/HSFO spread in Singapore is now around $70/ton compared with only $53/ton at the start of November.

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General developments in the oil markets would indicate a further widening in this spread, based on the relative weakening of HSFO prices and relative strengthening of VLSFO as:

Demand for fuel oil into the power-generation sector eases; Saudi Arabian demand is down after the summer peak aircon demand and Pakistan has decided not to go ahead with a 500,000 ton HSFO tender for December delivery, although LSFO demand in South Korea is up in December by around 100,000 tons as utilities move to replace coal-fired capacity that has been shut-in because of winter air-pollution issues.
and at the same time, relative VLSFO prices strengthen with improving margins for gasoil, gasoline and jet fuel margins as product demand in Asia rises (and product supply in Europe is reduced because of cuts in refinery runs).

Any further increases in oil prices are likely to add to these general widening pressures on the VLSFO/HSFO spread, lending further support to scrubber economics.

We have always referred to the underlying movements in bunker prices being led by crude oil, and of course it is the same this time around. VLSFO has largely tracked changes in the hugely traded Brent and WTI crude futures markets, and will continue to respond to the current big stories of vaccines, the prospects for oil demand and OPEC+ outcomes.

Photo credit and source: Integr8 Fuels
Published: 4 December, 2020

FuelEU

GTT Marine partners with BetterSea on FuelEU trading, pooling integration

Integration will enable GTT Marine customers and platform users to execute FuelEU trading and pooling end-to-end, directly from the Vesper Insights platform.

Published

6 minutes ago

September 22, 2026

Admin

GTT Marine partners BetterSea to integrate FuelEU trading, pooling into Vesper Insights

BetterSea, provider of a FuelEU compliance platform and marketplace, and GTT Marine, a business unit of the GTT Group, on Monday (21 September) announced a white-label integration partnership to accelerate FuelEU Maritime compliance for shipping companies.

Under the partnership, GTT Marine will integrate BetterSea’s platform into its own Vesper Insights platform offering, enabling GTT Marine customers and platform users to execute FuelEU trading and pooling end-to-end, directly from the Vesper Insights platform.

Through this white-label integration, customers will gain access to BetterSea’s full FuelEU infrastructure, including marketplace access, simulation tools, pooling and post-trade workflows, as well as streamlined Thetis reporting capabilities, all within the Vesper Insights environment.

This creates a uniquely aligned offering for customers seeking a single, trusted route to FuelEU compliance and execution.

As FuelEU Maritime moves into operational reality, shipping companies need more than visibility into compliance exposure. They need the ability to assess options, execute transactions, and complete workflows reliably and at scale.

The BetterSea-GTT Marine partnership addresses that need by combining BetterSea’s execution-ready FuelEU platform with GTT Marine’s strong position in vessel performance and maritime innovation.

Through the BetterSea-GTT Marine partnership, customers will gain:

access to FuelEU trading and pooling execution directly within GTT Marine Vesper Insights platform
access to BetterSea’s FuelEU marketplace
simulation tools to compare compliance pathways across different regulations and evaluate cost exposure
pooling and post-trade workflows supported by standardized legal and financial structures
pool tracking and Thetis reporting capabilities to support the full FuelEU execution process
fully streamlined and connected route to end-to-end FuelEU compliance

Maximilian Schroer, Co-CEO, BetterSea, said: “This partnership with GTT Marine marks an important step in our mission to make FuelEU compliance and pooling easier to access and execute, while underlining BetterSea’s position as the market leading FuelEU marketplace.

“By embedding our platform into GTT Marine Vesper Insights offering, we are giving customers a seamless and efficient path from compliance understanding to full trading and pooling execution, all within an environment they already know and use.”

Christian Treu, VP Revenue, GTT Marine, said: “At GTT Marine, we are committed to equipping our customers with practical and high-value solutions for the decarbonisation transition.

“Through this partnership with BetterSea, we can offer our users direct access to a complete FuelEU execution framework, from simulation to trading, pooling, and reporting, directly via our platform.”

Photo credit: GTT Marine
Published: 22 September, 2026

Alternative Fuels

DNV on IMO CCC 12: Revised guidelines for methanol as marine fuel

CCC 12 finalized the revision of the interim guidelines for use of methyl/ethyl alcohol as fuel while work continued on guidelines for low-flashpoint oil fuels and onboard carbon capture and storage systems.

Published

8 minutes ago

September 22, 2026

Admin

Classification society DNV on Monday (21 September) highlighted progress made on several regulatory and technical matters at the 12th session of the IMO Sub-Committee on Carriage of Cargoes and Containers (CCC 12), held from 14 to 18 September.

This includes alternative fuels, cargo securing, onboard carbon capture systems, and battery carriage:

Amendments to the IGF Code and development of guidelines for alternative fuels and related technologies

Methyl/ethyl alcohols

CCC 12 finalized the revision of the Interim Guidelines for the Safety of Ships Using Methyl/Ethyl Alcohol as Fuel (MSC.1/Circ.1621). The amendments revise all sections of the existing guidelines, taking into account experience gained to date.

The revised guidelines:

provide more flexibility in fuel tank placement and leakage-handling arrangements;
introduce a new concept for ventilation of fuel spaces;
expand guidance on the design of bunkering stations and fire extinguishing; and
add new guidance on bunkering operations and personal protective equipment.

Low-flashpoint oil fuels

CCC 12 continued work on the interim guidelines for ships using low-flashpoint oil fuels (fuel with a flashpoint between 52°C and 60°C). It was agreed not to develop detailed provisions for the “temperature-controlled engine room concept” but focus on a safety concept more aligned with the existing guidelines under the IGF code, however with major simplifications of the safety barriers. Work on the interim guidelines will continue in a Correspondence Group aiming for finalization at CCC 13 in 2027.

Fuel cell power installations and IGF Code amendments

The revision of the Interim Guidelines for the Safety of Ships Using Fuel Cell Power Installations (MSC.1/Circ.1647), and other proposals for amendments to the IGF Code were not discussed in detail, but work will continue in a Correspondence Group reporting to CCC 13 in 2027.

Development of a safety regulatory framework to support the reduction of GHG emissions from ships using new technologies and alternative fuels

Onboard carbon capture and storage (OCCS)

CCC 12 started the discussion to develop guidelines for the safety of ships fitted with OCCS. The guidelines should contain a technology-neutral main body for common ship-level requirements, while technology-specific safety requirements will be placed in individual annexes. Work on the guidelines will continue in a Correspondence Group reporting to CCC 13 in 2027. The guidelines are expected to be finalized in 2028.

Note: The full technical and regulatory news by DNV can be found here.

Photo credit: Chris Pagan on Unsplash
Published: 22 September, 2026

Biofuel

Petrochina International blends over 30,000 mt of marine biofuel since March

Company has been developing marine biofuel blending operations at China (Zhejiang) Pilot Free Trade Zone, leveraging storage and logistics facilities at its Aoshan base.

Published

1 day ago

September 21, 2026

Admin

Zhoushan completes China’s first batch of marine biofuel blending under pilot programme

Petrochina International Co Ltd recently said it has blended more than 30,000 metric tonnes (mt) mt of biofuel since completing the country’s first biofuel marine fuel blending operation on 13 March.

The company said the milestone demonstrates its ability to conduct continuous and large-scale biofuel marine fuel blending operations.

The company has been developing marine biofuel blending operations at China (Zhejiang) Pilot Free Trade Zone, leveraging storage and logistics facilities at its Aoshan base.

Its latest product, B24 marine fuel containing 24% biofuel component, meets relevant International Maritime Organization (IMO) requirements and marine fuel standards, according to the company. It said the product can be supplied for bunkering vessels operating on international routes.

It has used its global trading network to secure feedstock supplies and support cost control and supply security for the blending operations, it added.

The company said the large-scale blending of its marine biofuel products marks a development in China’s marine biofuel blending market.

It plans to work with upstream and downstream businesses within its group to support the development of Zhoushan Port as a major bonded marine fuel bunkering hub and contribute to its parent group’s transition towards lower-carbon energy.

Manifold Times previously reported China (Zhejiang) Pilot Free Trade Zone launching the first pilot programme for marine biofuel blending in China with the completion of the first batch of B24-HSFO.

The launch was marked with the blending of 2,000 mt of biodiesel and 6,300 mt of high sulphur fuel oil (HSFO) in storage tank F-02 of Sinochem-Xingzhong Oil Staging (Zhoushan), producing 8,300 mt of B24-HSFO.

Manifold Times also reported the first cross-regional bonded bunkering operation of blended biofuel in East China was successfully completed at the Meishan Port Area of Ningbo-Zhoushan Port.

The B24-HSFO used in the bunkering operation was supplied by the Aoshan Petroleum Base in Zhoushan from the first pilot programme for marine biofuel blending in China.