World News
Seascale Energy Navigates Volatile Q1 as Middle East Crisis Reshapes Bunker Markets
Seascale Energy, the marine fuels joint venture set up by commodities firm Cargill and tanker company Hafnia, said its Q1 2026 was marked by Middle East tensions that reshaped shipping patterns and bunker fuel markets.
The company pointed to disruption in the Strait of Hormuz as a key driver, affecting supply chains across the Middle East and Indian Subcontinent and pushing prices higher, the firm said in a Q1 update on its website on Thursday.
Bunker fuel is still available, but supply has become uneven, more expensive and harder to secure, particularly for VLSFO, blending components and MGO.
Seascale Energy said this has made bunker procurement more important, with timing, access and execution having a direct impact on voyage costs.
During the quarter, the company said it worked with customers to manage the situation, using its supplier network and market insight to secure fuel across key ports despite tighter conditions.
It added that a board meeting and customer event were held in Singapore during the period, allowing discussion around market developments and operational challenges.
Looking ahead, the company said the gap between well-managed and poorly managed procurement is widening, with current market conditions favouring scale and informed decision-making.
Launched in May 2025, Seascale Energy has expanded its portfolio to include LNG, biofuels and green methanol.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 795.50 | 70.00 | 1670.50 | 203.50 |
| Rotterdam | 671.00 | 73.50 | 1277.00 | 223.00 |
| Houston | 899.00 | 20.00 | 1304.50 | 155.50 |
| Fujairah | 779.50 | 66.50 | 1684.50 | 54.00 |
| Global 20 Ports Average | 919.00 | 53.00 | 1670.00 | 173.50 |
| Global 4 Ports Average | 786.00 | 58.00 | 1484.00 | 159.00 |
| Global Average Bunker Price | 1017.00 | 40.00 | 1757.50 | 102.50 |
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