Singapore’s LNG-biofuel price gap shrinks amid oil dip

In Singapore, bunker intelligence platform ENGINE reported a shrinking price gap between liquefied natural gas and biofuel blends in Singapore, driven by a sharp drop in Brent crude oil prices. Brent futures fell by $5.98/bbl over the week, easing supply concerns in the Middle East and exerting downward pressure on global fuel benchmarks.

The narrowing LNG-biofuel gap saw Singapore’s LNG discount to B24-VLSFO UCOME reduced by $28/mt to $41/mt, and its discount to B24-LSMGO shrinking by $32/mt to $65/mt. Despite these shifts, LNG prices have returned to a premium over low-sulfur marine gas oil, reflecting volatility in the global gas market.

Singapore’s very low sulfur fuel oil prices fell by $24/mt over the week, while Rotterdam saw a smaller $14/mt decline. Meanwhile, Singapore’s biofuel blends also experienced significant drops, with B24-LSMGO UCOME down by $41/mt.

LNG’s fluctuating advantage over biofuels reflects ongoing supply uncertainties, particularly in Asia, while Brent’s biggest weekly drop in over a year signals easing global oil pressures.

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