Bunker prices are falling at Rotterdam. File Image / Pixabay
VLSFO prices at Rotterdam, the world's second-largest bunkering location, have dropped below $500/mt after a slump in crude prices over the past week.
The delivered VLSFO price at the Dutch port sank by $22.50/mt to $491/mt on Monday, according to Ship & Bunker pricing. The price briefly dipped below $500/mt on July 20, but has otherwise remained above that level since May. The price has declined by $51.50/mt since its recent peak on July 6.
Brent crude futures have dropped rapidly this month on renewed concerns over COVID-19 outbreaks in Asia and the possibility of more lockdown measures. The front-month Brent contract closed at $69.04/bl on Monday, down from $74.53/bl on July 6.
The drop in prices is also bearing down on spreads between HSFO and VLSFO -- a key measure for owners of scrubber-equipped ships -- with HSFO prices falling less sharply over the past week. The spread at Rotterdam stood at $95.50/mt on Monday, down from $121/mt a week earlier.