Bunker prices are falling. File Image / Pixabay
VLSFO prices at Rotterdam, the world's second-largest bunkering location, have dropped below $500/mt after this month's slump in crude prices.
The delivered VLSFO price at the Dutch port sank by $21.50/mt to $495.50/mt on Tuesday, according to Ship & Bunker pricing, dropping below $500/mt for the first time since May. The price has declined by $47/mt since its recent peak on July 6.
Brent crude futures have dropped rapidly this month on OPEC agreeing to boost production and concerns over the spread of the Delta variant of COVID-19. The front-month Brent contract closed at $69.35/bl on Tuesday, 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 fortnight. The spread at Rotterdam stood at $105/mt on Tuesday, down from $123.50/mt on July 6.