Fuel and Freight Daily Update - 8/6/25

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08/07/2025

All pricing reflects end‑of‑day settlements from August 5th, 2025.

Colonial Pipeline Differentials:

• ULSD 62g (C46): -7.70

• Jet Fuel 54g (C47): -23.75

LT (ULSD) CME Blocks:

BALMO: -7.65
Q4 ’25 Avg: -10.43
Q1 ’26 Avg: -8.47
Q2 ’26 Avg: -6.45
Q3 ’26 Avg: -6.22

ME (Jet) CME Blocks:

BALMO: -24.63
Q4 ’25 Avg: -25.13
Q1 ’26 Avg: -21.83
Q2 ’26 Avg: -18.71
Q3 ’26 Avg: -18.54

Clean Tankers
Despite a continued surplus of clean product tankers in the U.S. Gulf, freight rates are holding steady. Regular flows to Latin America and the East Coast are offering support, while risk premiums baked into voyage planning (due to global tensions and rerouting) continue to shield rates from falling. The balance remains fragile though—should export volumes slow or ship repositioning pick up, pressure could resurface quickly.

Crude Tankers
VLCCs are still favoring the Cape of Good Hope, keeping voyage lengths extended and capacity tight. This has kept long-haul rates firm, particularly for Middle East-to-Asia flows. Market sentiment remains stable, buoyed by geopolitical risk aversion and the absence of route normalization. Traders and operators continue to treat the longer voyage as the new normal for the time being.

LNG Shipping
LNG freight rates remain elevated amid tight vessel availability. Spot market activity is limited, but ongoing extended voyage durations and consistent Atlantic basin demand are keeping the market supported. With minimal idle capacity, the sector remains vulnerable to any sudden spikes in demand or weather-related disruption.

Routing & Geopolitical Conditions
No material shifts in tanker routing today. Clean, crude, and LNG vessels continue to avoid the Red Sea and Hormuz in favor of the Cape of Good Hope. This sustained detour is keeping global tonnage stretched, increasing operational costs, and adding underlying support to freight rates across segments.

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