- Singapore VLSFO gains while Rotterdam weakens; Fujairah outperforms
- Regional supply tightness offsets weaker crude benchmarks
Global bunker fuel markets remained mixed in the week ended 8 August 2026, with VLSFO prices rising in Singapore and Fujairah, while Rotterdam recorded a sharper decline. Regional supply availability emerged as the key differentiator, with tighter conditions in Asian hubs providing support despite lower crude prices.
HSFO values softened in Rotterdam and Fujairah but edged higher in Singapore, reflecting divergent regional fundamentals. Lower crude and feedstock costs weighed on fuel oil markets, while steady bunker demand and tighter availability in parts of Asia limited the downside.
MGO prices declined across Singapore, Rotterdam, and Fujairah as weaker middle-distillate fundamentals and lower crude benchmarks pressured values. However, steady vessel activity across major shipping routes continued to provide a demand floor.
Overall, bunker markets remained under pressure from weaker crude prices and expectations of adequate supply, although regional tightness and geopolitical risks prevented a broad-based correction.
Regional bunker markets
- Singapore: VLSFO increased $5/tonne (t) w-o-w to $831/t, supported by steady bunker demand and balanced availability. HSFO also edged higher despite softer crude, while MGO declined as weaker distillate fundamentals weighed on demand sentiment.
- Rotterdam: VLSFO fell $36/t w-o-w to $645/t amid lower crude prices and comfortable regional supply. HSFO and MGO also declined as ample availability and softer product fundamentals outweighed steady vessel activity.
- Fujairah: VLSFO rose $20/t w-o-w to $825/t, supported by regional supply risks and heightened security concerns in the Middle East. HSFO eased, although tighter regional fundamentals limited the decline, while MGO followed the broader weakness in crude-linked products.
Market factors
- Brent crude declines w-o-w: Brent October 2026 futures fell to $81.88/barrel (bbl) as of 7 August from $90.25/bbl a week earlier. Expectations of higher supply and weaker global oil demand reduced the crude price premium, while Middle East uncertainty continued to limit downside.
- WTI follows Brent lower w-o-w: WTI futures declined to $78.18/bbl from $84.67/bbl a week earlier as supply expectations strengthened and concerns over demand growth increased. Seasonal consumption provided some support, but softer macroeconomic sentiment kept pressure on prices.
Outlook
Global bunker prices are likely to remain under pressure through August, with lower crude benchmarks and expectations of adequate supply limiting upside. However, regional differences should remain pronounced, with Asian hubs likely to retain stronger support than Rotterdam if local fuel availability remains relatively tight.
The main upside risk is a deterioration in the Middle East security situation. Any disruption to crude flows, bunker supply, or major shipping routes could raise freight and fuel costs quickly, reversing the recent downward trend.
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