Freight Investor Services witnesses rapid rise in VLSFO bunker fuel sales in February

Miguel E. Andujar, Oil Derivatives Broker at Freight Investor Services, on Tuesday (20 February) shared an article on the outlook of VLSFO bunker fuel for 2024, focusing on Rotterdam, Singapore and Houston: 

As we enter Q1 2024, the maritime fuel industry is witnessing a surge in Very Low Sulphur Fuel Oil (VLSFO) sales, signalling positive trends across major ports. In Rotterdam, VLSFO prices have rebounded by $10.50/mt in February, representing a significant 82% market share of bunker sales from January. This comes as a welcome recovery following a disappointing Q4 2023, marked by an 11% decline in sales.

Rotterdam’s resurgence sets a positive tone for the global bunker market, hinting at a turnaround from previous setbacks.

Singapore, a key player in the global maritime industry, replicates this momentum with a $6.00/mt increase in VLSFO prices in February. Bunker fuel sales in the strategic port surged by 12.1% year on year, reaching 4,906 million metric tons in January. This accounted for a substantial 59.2% of VLSFO sales, according to the Maritime and Port Authority of Singapore.

Houston, a vital port with significant import activity from Asia and North Europe, sees VLSFO up by $11.50/mt in February and $136/mt since the start of 2024, accounting for 62% of total bunker sales for this year.

With Crude Oil trading within a range, with a strong resistance at the $82-83 zone level, markets indicate a growing preference for LSFO and influencing bunker prices globally.

Additionally, the Red Sea conflict contributes to the shifting landscape, with longer voyages around the Cape of Good Hope raising end-user bunker consumption. As the year unfolds, these trends will continue to shape the trajectory of the global bunker market. 

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Published: 21 February, 2024