Singapore bunker prices rise to multi-month highs

Market: Oil products
13/01/25

Bunker fuel prices in the port of Singapore touched multi-month highs today, supported by a rally crude futures

Ice Brent Singapore crude reached $81.23/bl by close of trading in the port city, following the announcement of sweeping sanctions by the US administration on Russian energy exports. Shipowners and bunker buyers in Singapore were cautious about procurement given the elevated prices. Many pushed back their bunker buying, preferring to monitor near-term market developments.

Very-low sulphur fuel oil (VLSFO) prices on a delivered basis in Singapore jumped by $16.7/t to $590.72/t, the highest since 24 October 2024. Deals concluded by 19:00 Singapore time had touched $599/dob and could breach $600/t in the coming days if strength in the energy complex continues.

"Market is firm… I would not dare to fix anything today," a ship owner said, adding that "buyers should be very careful" when making procurement decisions. Another vessel owner said its earliest VLSFO bunker requirement would be for delivery from 26 January, and it was not looking to trade at the moment.

"It is very difficult to know how things will proceed, but think it might move higher," said a UK-based bunker trader.

VLSFO supply availability is limited, which could further support upward movement in prices in the coming days.

High sulphur fuel oil (HSFO) prices jumped by $34.67/t today to $507.67/t dob, the highest since 26 July 2024. Marine gasoil (MGO) prices were at a six-month high $731/t dob in Singapore, up by $30/t from the previous session.

The upside in crude futures was reflected in marine biodiesel prices, with B24 rising in Singapore. B24, which is a blend of 24pc used cooking oil methy ester (Ucome) and 76pc VLSFO, were assessed by Argus$14-15/t higher at $721-726/t dob.

Traders said B24 prices will follow the trend in VLSFO cargo prices, but spot liquidity may remain thin.

"Today people are still trying to figure out what right value is," said a key shipowner and trader, adding that prices could rise further this week.

By Mahua Chakravarty and Cassia Teo

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

10/01/25

Brazil’s inflation decelerates to 4.83pc in December

Sao Paulo, 10 January (Argus) — Brazil's headline inflation decelerated to 4.83pc at the end of 2024, as declines in power costs were only partially offset by gains in fuel and food, according to government statistics agency IBGE. The consumer price index (CPI) slowed from 4.87pc in November and compared with 4.76pc in October. The year-end print compared with 4.62pc in December 2023, but was down from 5.79pc in December 2022. Food and beverage costs rose by an annual 7.69pc in December, accounting for much of the monthly increase, following a 7.63pc annual gain in November. Beef costs increased by an annual 20.84pc in December following a 15.43pc annual gain for the prior month. Higher beef costs in the domestic market are related to the Brazilian's real depreciation to the US dollar, with the Brazilian real depreciating by 27.4pc to the US dollar between 31 December 2023 and the same date in 2024 . Still, beef prices decelerated by 5.26pc in December alone, down from 8pc in November. Soybean oil rose by 29.21pc over the year, an increase of 1.64 percentage points from November. Fuel prices rose by an annual 10.09pc in December after an 8.78pc gain in November. Motor fuel costs grew by 0.7pc in December, compared with a 0.15pc drop in the prior month, thanks to higher gasoline prices. Diesel prices increased by 0.66pc in the 12-month period, while it decreased by 2.25pc in November. Gasoline prices — the major individual contributor to the annual high, according to IBGE — rose by 9.71pc in December from 9.12pc in the prior month. Still, that was lower than in December 2023, when the annual inflation for gasoline stood at 11pc. Power costs in December contracted by an annual 0.37pc in December, as improvements in power generation allowed for removal of a surcharge from customer bills, after a gain of 3.46pc the prior month. In November, Brazil faced lower river levels at its hydroelectric plants after a period of severe droughts . Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. Brazil's central bank in December raised its target rate to 12.25pc from 11.25pc as the real's depreciation accelerated. It also signaled it is likely to increase the rate to 14.25pc by March. Monthly inflation accelerated to 0.52pc in December from 0.39pc in November. But the rate was lower than in December 2023, when it stood at 0.56pc. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

US issues 45Z tax guidance for low-carbon fuels

10/01/25

News

10/01/25

US issues 45Z tax guidance for low-carbon fuels

Washington, 10 January (Argus) — US producers of low-carbon fuels can start claiming the "45Z" tax credit providing up to $1/USG for road use and $1.75/USG for aviation, following the US Treasury Department's release today of proposed guidance for the credit. The guidance includes proposed regulations and other tools to determine the eligibility of fuels for the 45Z tax credit, which was created by the Inflation Reduction Act to replace a suite of incentives for biofuels that expired at the end of last year. Biofuel producers have been clamoring for guidance from the US Treasury Department so they can start claiming the tax credit, which is available for fuels produced from 1 January 2025 through the end of 2027. "This guidance will help put America on the cutting-edge of future innovation in aviation and renewable fuel while also lowering transportation costs for consumers," US deputy treasury secretary Wally Adeymo said. "Decarbonizing transportation and lowering costs is a win-win for America." The creation of the 45Z tax credit has already prompted a change in US biofuels markets by shifting federal subsidies from blenders to producers. Because the value of tax credit increases for fuels with the lowest lifecycle greenhouse gas (GHG) emissions, it could encourage refiners to source more waste feedstocks such as used cooking oil, rather than conventional crop-based feedstocks. While the guidance is still just a proposal, taxpayers are able to "immediately" use the guidance to claim the 45Z tax credit, until Treasury issues additional guidance, an administration official said. The guidance on 45Z released today affirms that only the producer for the fuel is eligible to claim the credit, not blenders. To be eligible for the tax credit, the fuel must have a "practical or commercial fitness for use in a highway vehicle or aircraft" by itself or when blended into a mixture, Treasury said. Marine diesel and methanol suitable for highway or aircraft use are also eligible for 45Z, as is renewable natural gas that can be used as a transportation fuel. Treasury also released an "annual emissions rate table" offering providers a methodology for determining the lifecycle GHG of fuel. Treasury said a key emissions model from the US Department of Energy, called 45ZCF-GREET, used to calculate the value of the 45Z tax credit is anticipated to be released today, although industry officials said it may be delayed until next week. Treasury said it intends to propose regulations at "a future date" for calculating the GHG emissions benefits of "climate smart agriculture" practices for "cultivating domestic corn, soybeans, and sorghum as feedstocks" for fuel. Those regulations could lower the calculated lifecycle emissions of fuel from those crop-based feedstocks and increase the relative 45Z tax credit. US biofuel producers said they are still awaiting key details on the 45Z tax credit, including the update to the GREET model. Among the outstanding questions is if the guidance released today provides "enough certainty to negotiate feedstock and fuel offtake agreements going forward", said the Clean Fuels America Alliance, an industry group that represents the biodiesel, renewable diesel and sustainable aviation fuel industries. It is unclear how president-elect Donald Trump intends to approach this proposed approach for the 45Z credit, which will be subject to a 90-day public comment period. Trump has promised to "rescind all unspent funds" from the Inflation Reduction Act. But outright repealing 45Z would leave biofuels producers and farmers without a subsidy they say is needed to sustain growth, after the expiration last year of a $1/USG blender tax credit and a tax credit of up to $1.75/USG for sustainable aviation fuel. Biofuel and soybean groups were unsuccessful in a push last year to extend the expiring biofuel tax credits. The 45Z credit is likely to be debated in Congress this year, as Republicans consider repealing parts of the Inflation Reduction Act. House Republicans have already asked for input on revisions to the 45Z credit, signaling they could modify the incentive. In a tightly divided Congress, farm-state lawmakers may hold enough leverage to ensure some type of biofuel incentive — and potentially one friendlier to agricultural producers than 45Z — survives. By Chris Knight and Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US banks withdraw from global climate alliance

09/01/25

News

09/01/25

US banks withdraw from global climate alliance

Washington, 9 January (Argus) — The six largest US banks have withdrawn from an industry-led group that works to align financing with a goal of reaching net-zero greenhouse gas emissions by 2050. With president-elect Donald Trump poised to return to the White House, JPMorgan Chase this week joined Bank of America, Citibank, Wells Fargo, Goldman Sachs and Morgan Stanley in pulling out of the Net Zero Banking Alliance (NZBA). All of the departures have occurred since climate skeptic Trump won re-election in November. JPMorgan did not give a reason for leaving the group it had joined in 2021 but said it was focused on "pragmatic solutions to help further low-carbon technologies while advancing energy security". The NZBA declined to comment on the departures. The bank-led NZBA launched in 2021, with a goal to align with industry's lending and investments with the goals of the Paris climate accord. Trump has promised to again pull the US out of the Paris agreement. The 144 banks that were members of the group as of last October were committed to align their portfolios with pathways to reach net-zero by 2050 or sooner. But critics said the industry group, which was convened by the UN, was effectively coordinating a boycott of investment with the oil and gas industry. Texas attorney general Ken Paxton in 2023 began reviewing JPMorgan and other US banks to see if their membership in the NZBA ran afoul of a state law that barred state entities from entering into contracts with banks that boycott the oil and gas sector. Paxton said the departure of banks from the group was a "major step in the right direction." Paxton's office said it had closed reviews of Wells Fargo, Bank of America, JP Morgan and Morgan Stanley. Trump has called climate change a hoax and recently said he wanted to impose a "policy where no windmills are being built". In response to the deadly wildfires across Los Angeles, Trump today blamed the crisis on California leaders and falsely claimed the US Federal Energy Management Agency has "no money — all wasted on the Green New Scam". By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Union, US ports reach tentative deal: Update

09/01/25

News

09/01/25

Union, US ports reach tentative deal: Update

Adds comments from White House, retail industry. New York, 9 January (Argus) — Unionized port workers and operators of US east and Gulf coast ports and terminals have reached a tentative agreement on a new work contract, averting a strike that would have started next week. The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) said the new six-year contract still needs to be reviewed and approved by members of both sides before it will be ratified. They have agreed to continue to operate under the current contract until the agreement is finalized. "This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports — making them safer and more efficient and creating the capacity they need to keep our supply chains strong," the ILA and USMX said in a joint statement. US president Joe Biden praised the deal, saying it shows both sides can settle their differences to benefit workers and their employers. "I applaud the dockworkers' union for delivering a strong contract," Biden said. "Their members kept our ports open during the pandemic, as we worked together to unsnarl global supply chains." The National Retail Federation (NRF) also lauded the deal after the group signed a letter last month urging the parties to resume negotiations. "Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers," said Jonathan Gold, the NRF's vice president of supply chain and customs policy. Details of the agreement will not be released until after members have had time review and approve the deal, ILA and USMX said. The current contract was set to expire on 15 January after the parties struck a temporary agreement to end a three-day port strike in October 2024 . By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Damaged Iver bitumen tanker set to return end-Jan

09/01/25

News

09/01/25

Damaged Iver bitumen tanker set to return end-Jan

London, 9 January (Argus) — A bitumen tanker damaged after a collision with a bulker five months ago is set to finish lengthy repair work by 23 January, and be back with its time charterer TotalEnergies at the firm's Donges refinery and export terminal on the French Atlantic coast on 26 January. The 6,189dwt Iver Blessing — part of Dutch Vroon Group's Iver Ships unit — was under time charter with TotalEnergies and was offshore the French Atlantic port of Nazaire when the accident that caused serious damage to the bitumen tanker happened. The vessel was en route to the company's 219,000 b/d Donges refinery to load its next bitumen export cargo in August 2024. The tanker has since undergone repairs at a shipyard in Flushing, Netherlands, that had been due to last 1-2 months, but there have been repeated delays, including difficulties in obtaining replacement parts. TotalEnergies is a key player in northwest European and Nordic bitumen cargo markets, and the prolonged repair work forced it to seek spot or other short-term tanker charters, mainly with Iver Ships, to maintain its shipping programme. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more