Connect with us

Bunker Fuel

Integr8 Fuels: Bunker buyers haven’t seen prices this good for almost five years

Singapore VLSFO and Brent crude tumbled sharply in October, reaching their lowest levels since January 2021. Steve Christy gives insights on what’s driving these price drops and what it could mean for bunker strategies.

Admin

Published

on

Bunker Buyers Haven’t Seen Prices This Good for Almost Five Years

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

VLSFO prices slide to their lowest levels since early 2021 – and could go even lower.

Thankfully, the short-term oil market analysis looks easier than unravelling the current challenges within the International Maritime Organisation (IMO). So, sticking to the market analysis, we continue to look towards lower bunker prices, and are picking up from the themes of last month’s report, which were:

September bunker prices had fallen sharply, despite crude prices remaining near flat.

All the pointers were for crude prices to fall in Q4, which would lead to even lower VLSFO prices.

The Q4 pointers have already started to play out, with crude and VLSFO prices falling sharply over the first three weeks of October. As a result, Brent front month futures are now just above $60/bbl, compared with close to $70/bbl at end September, and Singapore VLSFO is around $440/mt, compared with a high of $490/mt towards the end of September.

The graph below illustrates these Brent and Singapore VLSFO price movements since August, and the significant drop that has taken place in October.

Integr8 Fuels: Bunker buyers haven’t seen prices this good for almost five years

As a note, Rotterdam VLSFO prices have generally tracked Singapore prices, but been around $25-30/mt below Singapore.

Bunker buyers haven’t had it this good for almost 5 years

In a number of this year’s monthly market reports we have highlighted the weakening fundamentals in the oil sector, and that these would drive prices lower. At times this ‘fundamentals story’ has been outweighed by heightened geopolitical tensions and US trade strategies. Consequently, we have seen periods where prices have risen against what looks like a growing surplus of oil emerging.

However, the general price trend this year has been downwards, and in October the price fall has been even more extreme. We are currently in a phase where analysts and industry reports are all focusing on the growing oil surplus; the fundamentals are driving the market.

So, based on bunker buyers’ preferences for lower prices, the graph below must be a pleasing one. It illustrates quarterly average VLSFO prices and the slide that has taken place seen since the start of 2024, along with the more recent sharp decline that we have seen this month.

Integr8 Fuels: Bunker buyers haven’t seen prices this good for almost five years

It’s a good story if you like low prices

Current VLSFO prices are around $100/mt lower than the average for Q1 this year, and some $175-200/mt lower than the quarterly highs seen in 2023. That’s a 30% drop in two years! In fact, we are at the lowest price levels for almost 5 years (since Jan 2021). Bunker buyers are in the ‘best of times’.

A repeat of the basic oil fundamentals for next year?

Without going into the detail outlined in our recent reports, the market is still looking at limited increases in oil demand next year, against substantial increases in oil supply. A general view is that the oil surplus (supply higher than demand) was running at around 1.5 million b/d over the first half of this year, but could rise to 3 million b/d over the second half of this year, and then to a massive 4.5 million b/d in the first half of 2026. Based on this, and a perceived easing in geopolitical risks, it is not surprising that most analysts are forecasting oil prices to fall even further from what are current ‘low’ levels.

Note: The full Intergr8 Fuels article can be viewed here

 

Photo credit: Integr8 Fuels
Published: 29 October, 2025

Continue Reading

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Admin

Published

on

By

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

Continue Reading

LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.

Admin

Published

on

By

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

Continue Reading

Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

Admin

Published

on

By

ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

Continue Reading

Trending