VLSFO

Integr8: European VLSFO bunker fuel prices are worth watching

Research contributor Steve Christy explains what is behind the steep rise in European VLSFO prices relative to markets elsewhere in the world and where the Rotterdam VLSFO price may go in the coming weeks.

Published

2 years ago

February 23, 2024

Admin

Integr8: European VLSFO bunker fuel prices are worth watching

By Steve Christy, Research Contributor, Integr8 Fuels
[email protected]

22 February 2024

Recent uptick in oil prices; but for temporary reasons

There are mixed signals driving the absolute price of oil at the moment, with a slightly more bullish push over the past two weeks. But, to put it in context, this recent uptick followed a sharp drop in prices at the end of January and into the first few days of February, when Brent crude fell from $82/bbl to $77/bbl. The ‘bullish’ push in the past two weeks has only brought Brent back to $82/bbl.

Looking at very low sulphur fuel oil (VLSFO) prices in Singapore and Fujairah, these have traded in a narrow $25/mt range so far this month and are still lower than their end January levels (and $35-40/mt lower than average November prices). This is not the case in Rotterdam.

Integr8: European VLSFO bunker fuel prices are worth watching

Behind these price movements there have been some temporary bullish factors in the oil industry so far this year. Arctic weather conditions in North America shut in around 0.9 million b/d of oil production and halted around 1.7 million b/d refinery operations. At the same time, there have been planned, heavy maintenance programs in the Atlantic Basin refining industry running through January and into February. This again has restricted product availabilities and led to lower stock levels. But these are temporary issues!

On the bearish side, in recent reports we have focused on the weak prospects for oil demand this year, and this is still in play, especially when you look at the International Energy Agency’s (IEA) latest forecast for 2024. Also, gains in non-OPEC production look as though they will be high this year, and the recent cuts in OPEC+ production have been limited to only 0.2-0.3 million b/d from December levels. Therefore, the fundamentals for this year would indicate a ‘lid’ on prices. This, plus the ability of the industry to work around the attacks on Red Sea shipping, has so far superseded the heightened political events and risks in the Middle East region.

European VLSFO prices are ‘more exposed’

From the chart above, Rotterdam VLSFO prices have risen more steeply than in Singapore and Fujairah over the past two weeks. Rotterdam VLSFO prices are around $50/mt higher than in early February, and unlike the other major bunkering hubs, Rotterdam prices are higher than we have seen so far this year, and some $10/mt above their November average.

Back in November, Rotterdam VLSFO was priced at around $580/mt and Singapore at around $680/mt, i.e. a differential of $100/mt. Between then and now Singapore prices have fallen by $40, but Rotterdam prices have gone in the opposite direction and are around $10 higher. The net result is that the differential between the two markets has narrowed from $100- to $50/mt.

VLSFO pricing related to middle distillate pricing

The nature of VLSFO means supply and price movements are closely related to what is happening in other products. The chart below shows the close relationship between Rotterdam VLSFO and NW European diesel prices.

graph 3 (2)

The European VLSFO market looks like it will only get tighter

Europe is naturally short in the middle distillates of jet, diesel, and gasoil and so highly dependent on imports. The European sector had already been under pressure since the embargo on Russian supplies. However, the situation has tightened even further with the attacks on shipping in the Red Sea. These latest developments have hit diesel and jet shipments from the Middle East and India to Europe, with a leap in freight costs, longer voyage times via the Cape of Good Hope and tighter market conditions in Europe.

This loss of these supplies from east to west has partly been made up by an increase in diesel exports from the US to Europe. However, this may be short-lived as US refinery turnarounds in the first quarter cut availabilities and potentially limit diesel exports. Hence, European diesel (and so VLSFO) prices are likely to rise relative to VLSFO markets elsewhere in the world.

To compound this even more, Ukraine drone attacks on Russian refineries may have affected operations and so diesel exports from the country. Although this will not have a direct impact on the European diesel position, there is an indirect consequence, with other buyers of Russian products left short and having to source supplies from elsewhere, which will be in direct competition with European buyers.

Add to this a number of major European refineries going into turnaround in the north and Med regions, and the market is potentially even tighter!

If this isn’t enough, then there is a further layer to add to the argument; and that is the current exceptionally low distillate stock levels in Europe. The graph below shows the five year high/low range for middle distillate stocks in Europe, and that for the past two years stocks have been well below their five year average. More importantly, over the past three months stocks have been below their previous five year lows, and this is at a stage when we expect the market to tighten even further.

Whatever happens, Rotterdam VLSFO prices are likely to be relatively high

All else being equal (it never is!), the fundamentals point towards a more bearish oil market, but with this relative strengthening in European VLSFO prices.

Beyond the fundamentals, the geopolitical risks at the moment clearly lie in the Israel/Gaza position and developments surrounding Iran. But there are also a number of elections this year that will contribute to more uncertainty, not least in the US.

However, as things pan out, the European distillate market does look tight going forward and this would mean relatively higher VLSFO prices in Rotterdam, and Europe generally.

Photo credit: Integr8 Fuels
Published: 23 February, 2024

Related Topics:Bunker fuel - VLSFO Others - Research

Up Next

Singapore: EPS orders its first wind-assisted propulsion system for tanker

Don't Miss

Galveston LNG Bunker Port joins SEA-LNG coalition

Bunker Fuel

Baltic Exchange: Bunker Report (13 August 2026)

Bunker report panellists include Island Oil Limited, Cockett Marine Oil Pte, Monjasa A/S and KPI OceanConnect, NSI Marine and Transparensea Fuels.

Published

2 days ago

August 14, 2026

Admin

The following bunker report has been provided by freight market information provider Baltic Exchange for post on Singapore bunkering publication Manifold Times:

Screenshot 2026 08 14 at 1.23.10 PM

Screenshot 2026 08 14 at 1.23.22 PM

All values are in US$/metric ton, all-in (invoice price), delivered on board
Delivery in 7-10 days
ISO 8217:2010
IFO 380 3.5% Sulphur
IFO 380 0.5% Sulphur
DMA 0.1% Sulphur

Fujairah – Offshore Anchorage Area
Gibraltar – Anchorage area
Houston – Houston Harbor
Panama – (Pacific) dangerous cargo area, Balboa
Rotterdam – Waalhaven Maasvlakte range
Singapore – Anchorage, under SBA Scheme
Zhoushan – Southern anchorage area

Submitted weekly at Close of Business UK time Daily

Panellists:
Cockett Marine Oil Pte, Island Oil Limited, KPI OceanConnect, Monjasa A/S, NSI Marine and Transparensea Fuels

Photo credit and source: Baltic Exchange
Published: 14 August, 2026

Bunker Fuel Availability

ENGINE: Americas Fuel Availability Outlook (13 August 2026)

Prompt fuel availability tight at Houston; VLSFO, LSMGO availability tightens in Santos; Zona Comun demand steady.

Published

2 days ago

August 14, 2026

Admin

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Prompt fuel availability tight at Houston
VLSFO, LSMGO availability tightens in Santos
Zona Comun demand steady

North America

Bunker fuel demand in Houston is firm, with prompt availability tight across all three conventional fuel grades of HSFO, VLSFO and LSMGO.

Suppliers are recommending lead times of around 5–7 days, a bunker trader tells ENGINE.

Weather conditions across the US Gulf Coast are normal, with no major disruptions from the ongoing hurricane season.

In the nearby Bolivar Roads, limited prompt availability has been observed.

One supplier has been able to offer VLSFO stems within 4–6 days over the past week, and typical lead times in the area generally remain above five days, a trader said.

Deliveries at the anchorage continue to be subject to weather conditions and are currently being handled on a first-come, first-served basis.

In Mobile, the earliest delivery date for VLSFO is currently indicated between 18-19 August.

The Galveston Offshore Lightering Area (GOLA) is expected to face minor weather-related disruptions through 15 August due to strong wind gusts and high seas.

In New York, bunker demand is strong, and availability is decent for LSMGO and VLSFO deliveries, with lead times ranging between 4-7 days.

HSFO is expected to tighten a bit, and requires notice of at least seven days, this week, a trader said.

Weather conditions at the port are normal, and no congestion or weather-related disruptions are expected through the end of the week.

Across the US West Coast, bunker availability is a bit tight, with buyers advised to secure stems in advance to avoid delays, a bunker trader tells ENGINE.

In the ports of Los Angeles and Long Beach, HSFO and LSMGO typically have required around 7–9 days notice in the past week.

VLSFO is more constrained, with lead times of 9–11 days. The earliest delivery dates for VLSFO with most suppliers are currently indicated from around 21-22 August onwards.

Availability in Canada’s Vancouver is good for HSFO, VLSFO and LSMGO this week, a source said. Lead times for the three fuel grades are between 4-7 days.

Latin America and the Caribbean

In Panama, bunker demand is steady, and availability is normal, a trader tells ENGINE.

Recommended lead times at the ports of Balboa and Cristobal for VLSFO and LSMGO stand at around 3–6 days. HSFO availability is relatively tighter, with most suppliers requiring 5–7 days’ lead time.

In the Bahamas’ Freeport, at least one supplier is offering HSFO and LSMGO with lead times of around 6–7 days.

Off Trinidad, bunkering operations may face disruptions due to high wind gusts and rough seas through 15 August. Delays are expected and will depend on supply vessel conditions at the time of delivery, a source said.

In Colombia, bunker availability at the ports of Cartagena, Santa Marta and Barranquilla is good, with the earliest delivery dates for VLSFO and LSMGO indicated at 3–4 days, a trader said.

In Brazil, Santos is seeing tighter availability for both VLSFO and LSMGO, with suppliers recommending lead times of around 7–10 days to secure deliveries.

Across other key Brazilian ports, Rio de Janeiro, Rio Grande, Belém, Salvador and Vila do Conde, supply conditions are okay. Both grade require between 5–8 days of lead time, a source said.

Paranaguá continues to show tighter VLSFO and LSMGO availability, with lead times of about 6–8 days.

In Argentina’s Zona Comun, bunker demand is steady, with normal availability. Recommended lead times for VLSFO and LSMGO are around 5–7 days. However, delays are expected at the anchorage due to high wind gusts.

By Gautamee Hazarika

Photo credit and source: ENGINE
Published: 14 August, 2026

Bunker Fuel Availability

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (12 August 2026)

Prompt availability tight in the Gibraltar Strait; barge availability issues in Piraeus; 4-5 days of lead time required in Luanda.

Published

3 days ago

August 13, 2026

Admin

The following article regarding Europe and Africa bunker fuel availability has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

Prompt availability tight in the Gibraltar Strait
Barge availability issues in Piraeus
4-5 days of lead time required in Luanda

Northwest Europe

Bunker fuel availability is tight for prompt supplies in the ARA, with buyers advised lead times of 5-7 days to get good coverage from suppliers, a trader said.

The ARA’s independently held fuel oil stocks have averaged 10% higher so far in August compared to July, according to Insights Global data.

The ARA hub imported 457,000 b/d of fuel oil in the first week of August, a sharp increase from July’s monthly average of 159,000 b/d, according to Vortexa cargo data. Benin (35%) was the biggest import source, followed by Venezuela (19%) and Colombia (17%).

The region’s independent gasoil inventories – which include diesel and heating oil – dropped by 9% in the first week of August, compared to July, according to the Insights Global data. The gasoil inventories fell to their lowest level in just over four years.

The region has imported 228,000 b/d of gasoil this month, a considerable rise from 119,000 b/d imported across June, according to Vortexa data. The majority of volumes arrived from the US (23%), Sweden (21%) and France (10%).

Bunker availability is normal in Germany’s Hamburg, and supply of any fuel grade can be secured within five days, a trader told ENGINE.

Availability is tight off Denmark’s Skaw and in Sweden’s Gothenburg, with buyers recommended lead times of 10 days for any fuel grade, according to a trader.

Mediterranean

Availability is tight in Gibraltar Strait ports, with buyers recommended lead times of around 7-10 days to get competitive offers from a wide selection of suppliers, a trader said.

Buyers looking to bunker in Barcelona are advised to book a week ahead of delivery, a trader said.

In Las Palmas, fuel availability is tight for prompt supplies, and buyers are advised lead times of 10-12 days for HSFO, VLSFO and LSMGO deliveries, a trader told ENGINE.

VLSFO fuel availability is tight off Malta, with buyers recommended seven days of lead time, a trader said. ULSFO supply requires about six days of notice, while LSMGO is available with a more prompt lead time of 2-5 days.

Prompt fuel availability is tight in Greece’s Piraeus. Buyers looking for HSFO, VLSFO, LSMGO and ULSFO supplies are advised to book with a lead time of around 5-7 days, a trader said. Suppliers are facing tight barge availability in the port, a source told ENGINE.

Fuel availability is good in Türkiye’s Istanbul, a local supplier said. Buyers looking to bunker in the port are recommended a notice of four days for VLSFO and 1-3 days for LSMGO and ULSFO supplies, a trader said.

Africa

HSFO availability is tight in most African ports, with suppliers reporting very limited availability.

VLSFO and LSMGO availability is tight for prompt delivery dates in Lome and off Walvis Bay, a trader said. Buyers are advised to book deliveries at least seven days in advance, the trader told ENGINE.

VLSFO deliveries at the Lagos anchorage require 5-7 days’ notice, a local supplier told ENGINE.

In Angola’s Luanda, buyers are advised to book VLSFO and LSMGO supplies with a lead time of 4-5 days, a supplier said.

Prompt VLSFO availability is tight off Algoa Bay, with buyers advised at least 5-7 days’ notice, a trader said.

Bunker availability is tight in Port Louis, with suppliers quoting their earliest delivery dates 10-14 days out for VLSFO and LSMGO, a trader said.

By Nachiket Tekawade

Photo credit and source: ENGINE
Published: 13 August, 2026