MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued slight downward trend on March 18:
380 HSFO – USD/MT – 426.52 (-5.08)
VLSFO – USD/MT – 530.76 (-4.76)
MGO – USD/MT – 605.88 (-0.33)
As of March 18, a correlation of MBP Index (Market Bunker Prices) vs DBP Index (Digital Bunker Prices = MABUX Digital Benchmark) in four largest global hubs showed that 380 HSFO fuel remained undervalued at three selected ports ranging from minus $ 10 (Fujairah) to minus $ 25 (Singapore), while an undercharge by $ 1 was registered at the port of Houston. Two ports, according to the DBP Index, showed an underestimation of VLSFO fuel: minus $ 18 in Rotterdam and minus $ 27 in Singapore. Fujairah recorded a VLSFO overpricing by $ 16 as a result of a fuel shortage caused by an unexpected outage at the Uniper refinery last week. In Houston, VLSFO was also overcharged by $ 23. MGO LS, according to DBP Index, remained undervalued in two selected ports: minus $ 38 in Rotterdam and minus $ 37 in Singapore. In Fujairah, the DBP Index showed an overcharge of MGO LS by $ 10, and in Houston – by $ 22.
World oil indexes fell on March 18 on growing worries about rising COVID-19 cases in Europe and the strengthening U.S. dollar.
Brent for May settlement fell by $4.72 to $63.28 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery dropped by $4.60 to $60.00 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.28 to WTI. Gasoil for April delivery lost $16.75 – $515.50.
Today morning oil indexes continue slight downward movement.
The International Energy Agency (IEA) said that global oil demand would take until 2023 to return to the pre-pandemic levels of 100 million bpd, but COVID-19 would change parts of consumer behaviour forever, with global gasoline demand likely past its peak already.
The suspension of AstraZeneca vaccine shots in more than a dozen European countries has raised concerns about oil demand recovery in the region as vaccination campaigns in many countries were disrupted.
The dollar’s rise has also contributed to the oil sell-off. A stronger dollar makes oil more expensive for holders of other currencies.
We expect bunker prices may fall today by 10-24 USD for 380 HSFO, by 15-27 USD for VLSFO and by 10-25 USD for MGO.