European bio-bunkers: Prices diverge, abatements firm

Market: Biofuels, Oil products
01/07/25

European marine biodiesel prices diverged as prices in underlying markets also diverged on Tuesday.

In prompt biodiesel markets, outright used cooking oil methyl ester (Ucome) and Advanced Fatty acid methyl ester (Fame) 0 barge prices rose sharply at the close. In fossil markets, the front-month Ice Brent crude and gasoil futures contracts diverged again at 16:30 BST. Delivered VLSFO and MGO prices were mostly close to steady in ARA and GAC, except for VLSFO dob ARA, which fell by $10/t.

Marine biodiesel blend prices diverged along the type of biofuel used, as prices for Advanced Fame-based blends picked up while Ucome-based blends eased. Calculated B30 Advanced Fame 0 dob ARA prices, which includes a deduction of the value of Dutch HBE-G renewable fuel tickets, gained $2.38/t to $725.70/t. And calculated B100 Advanced Fame 0 dob ARA prices also increased by $31.29/t to $1,215.18/t — a one-year high.

B30 Ucome dob ARA values, on the other hand, eased by $5/t to $820/t, reflecting reported market indications. In the west Mediterranean, Argus assessed B24 dob Algeciras-Gibraltar lower by $10/t on the day at $750/t, also in line with indications.

Argus assessments for FuelEU Ucome-MGO abatement and Ucome-VLSFO abatement prices firmed by $8.88/tCO2e to $323.80/tCO2e and by $12.89/tCO2e to $363.70/tCO2e respectively. The increase in Ucome fob ARA prices outpaced higher MGO barge levels, while VLSFO fob northwest Europe values edged lower on the day, lending support to abatement prices.

EU ETS prices rebounded to $82.40/t from $80.46/t, but ETS-inclusive premiums held by marine biodiesel blends against their fossil counterparts mostly widened. B30 Ucome dob ARA's ETS-inclusive premium to VLSFO dob ARA rose by $3.73/t to $289.11/t. B30 Advanced Fame 0's ETS-incorporated premium to VLSFO gained $11.11/t to $194.82/t, while B100 Advanced Fame 0's premium to MGO firmed by $28.43/t to $379.75/t, a two-month high.

But the ETS-inclusive premium held by B24 dob Algeciras-Gibraltar to VLSFO dob GAC narrowed by about $13/t to $184.89/t.

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European bio-bunkers: Prices diverge, abatements firm

Related news posts

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Brazil launches climate mitigation strategy plan

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Natref bitumen supply ends early for Prax

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