Singapore VLSFO back above $1,000 for first time since March

Data from Ship & Bunker show very low sulphur fuel oil (VLSFO) broke through the $1,000 threshold on October 28, reaching $1,000.50 a tonne. Prices subsequently climbed to $1,019.50 on Friday before easing to $1,003.50 on Monday.

High sulphur fuel oil (HSFO) was assessed at $898.50 a tonne on Monday, while marine gasoil stood at $1,263.

The figures illustrate the extraordinary transformation of the bunker market since the US-Israeli strikes on Iran began on February 28.

Ship & Bunker data show Singapore VLSFO was trading at $521.50 a tonne immediately before the conflict. The fuel has since increased by more than 92%, having reached a peak of $1,120.50 on March 13.

For a ship taking on 3,000 tonnes of VLSFO, the current bunker bill is approximately $3m, compared with $1.56m before the war, an additional $1.45m for a single stem.

Scrubber-equipped vessels retain a significant advantage, with the Singapore VLSFO-HSFO spread currently standing at $105 a tonne. However, the absolute cost of burning either fuel has escalated dramatically.

The price surge is also affecting alternative fuels.

According to bunker pricing specialist ENGINE, LNG bunkers in Singapore reached $1,939 a tonne on Monday, up $74 over the previous week. Rotterdam LNG prices climbed $97 to $1,873, reflecting tighter European gas markets and continuing Middle Eastern disruption. LNG and oil-based bunker prices are not directly comparable by weight because of their different energy content.

Regional bunker price disparities are substantial. Ship & Bunker assessed Rotterdam VLSFO at $763.50 a tonne on Monday, around $240 below Singapore, while Fujairah was quoted at $991.50.

The Hormuz crisis has also complicated bunker procurement, with fuel shortages and extended delivery lead times forcing vessels to reconsider where and when they refuel.