• 3 min de lectura
• 3 min de lectura
The ongoing conflict in the Middle East, alongside the reduction of flows through the Strait of Hormuz, has sparked large scale disruptions to global energy supply. Prices increased sharply at the start of the conflict, with Brent crude briefly remaining north of $100 a barrel before fluctuating in a wide range, at times dipping to $85/bbl. Refining activity has also been impacted with many halting or reducing production.
While conventional fuel oil trends upwards, the price spread between conventional fuels and biofuels has narrowed considerably. In some cases, B100 has traded close to parity with LSMGO and has even been reported below conventional gasoil levels. While biodiesel can still sometimes appear higher on a per-tonne basis, the overall voyage cost is still approaching parity.
This marks a notable shift from previous market conditions, where biofuels consistently carried a significant premium. Improvements in feedstock availability, supply chains and market maturity are supporting this change, making biofuels a more commercially viable option across a wider range of operating conditions.
Unlike conventional fuel, biofuel prices are influenced by agricultural feedstock supply, policy incentives and regional supply chains. This positions biofuels as an increasingly reliable energy solution.
While the exact duration of the conflict and sustained volatility is hard to predict, this shift in pricing dynamics warrants a re-evaluation of fuel strategies, particularly for operators exposed to European regulation.
For those operating in Europe, regulatory frameworks such as EU ETS and FuelEU Maritime can further support the business case for biofuels by reducing exposure to carbon costs and supporting compliance targets. With the scope of EU ETS increasing from 70% to 100% in 2026, aligning fuel choice with compliance strategy is becoming increasingly important.
In this environment, aligning fuel choice with compliance strategy is critical. Whether operating in the spot market, trading forward, or using structured approaches such as limit orders, operators who take a holistic view can unlock meaningful commercial advantages.
At KPI OceanConnect, we support our partners in navigating these changing market dynamics, combining global fuel supply capabilities with tailored strategies that reflect operational and regulatory realities. With access to biofuels across key locations worldwide, as we have enabled biofuel supply in more than 200+ ports, we help clients integrate alternative fuels into their operations in a practical and commercially effective way. By aligning fuel choices with compliance requirements, we enable our partners to optimise costs while maintaining flexibility in an evolving market.
