The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO Gasoil) in the main world hubs) increased on Jan.08:
380 HSFO: USD/MT 356.58 (+2.57)
VLSFO: USD/MT 441.00 (+2.00)
MGO: USD/MT 499.24 (+1.64)
Correlation between the Market Bunker Price Index (MBP) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on Jan.08 showed undercharging of 380 HSFO bunker grades in Singapore (-4 USD), Rotterdam (-10 USD) and overcharging in Houston (+16 USD). In Fujairah the cost of 380 HSFO 100% correlates with DBP. At the same time, VLSFO is overcharged in all ports except of Singapore (-1 USD). MGO LS remained undervalued in all ports except of Houston (+ 14 USD).
Meantime, world oil indexes increased on Jan.08 as Saudi Arabia continued with its lower-for-longer supply strategy.
Brent for March settlement increased by $1.61 to $55.99 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February rose by $1.41 to $52.24 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.75 to WTI. Gasoil for January delivery added $7.50.
Today oil indexes decline amid renewed fuel demand worries as ever-rising numbers of global COVID-19 cases see more countries, most recently in China and Europe, impose strict lockdown measures.
China, the second-largest oil user globally, saw its biggest daily increase in COVID-19 cases in more than five months. The growing number of new infections in Hebei province which surrounds Beijing continued to rise, contributing to the surge. Hebei’s capital Shijiazhuan is now the epicenter of a new outbreak in the province, with authorities imposing lockdown measure barring people and vehicles form leaving the city. Most of the European continent also remains under strict lockdown, with the number of global COVID-19 cases surpassing 90.2 million as of Jan. 11.
We expect bunker prices may continue to rise today: 7-10 USD up for IFO and 5-7 USD up for MGO.