Global bunker prices may continue firm upward trend today
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 in the main world hubs) turned into firm upward evolution on Jul.22:
380 HSFO: USD/MT 446.74 (+7.53)
VLSFO: USD/MT 552.71 (+9.44)
MGO: USD/MT 644.12 (+10.47)
The MABUX ARA LNG Bunker Index – the average price of LNG as a marine fuel in the ARA region, rose slightly on July 23: 767.49 USD/MT (+0.19 USD). The LNG Bunkering Index exceeds the cost of MGO LS in the Port of Rotterdam by USD 197.49 (570 USD/MT as of July 22), the difference in price compared to the day before has decreased by $ 20. LNG Bunkering Indices are available at www.mabux.com.
As of July 22, a correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (Digital Bunker Prices Benchmark) in four largest global hubs showed that 380 HSFO fuel was undervalued in all selected ports: from minus $ 18 at Houston (minus $ 10 the day before) to minus $ 36 (minus $ 34) in Rotterdam and minus $ 43 (minus $ 36) in Singapore. The difference between MABUX MBP and DBP indices rose again in Houston by $ 8 and in Singapore by $ 7.
VLSFO, according to the MABUX DBP Index, was also underestimated in all selected ports on July 22. The underpricing of VLSFO was minus $ 5 in Houston (a day earlier there was registered an overcharge by $ 8), minus $ 28 (minus $ 14 a day earlier) in Fujairah, minus $ 33 (minus $ 14) in Singapore and minus $ 26 (minus $ 17) in Rotterdam. The VLSFO’s underestimation ratio at all ports has risen sharply.
On July 22, MABUX DBP Index also registered the underpricing of MGO LS at all selected ports, while at Houston there was recorded a $ 10 undervaluation versus a $ 3 overestimation a day earlier. In Rotterdam, MGO LS was undervalued by $ 53 (minus $ 50 the day before), minus $ 68 (minus $ 52) in Singapore, and minus $ 38 (minus $ 40) in Fujairah. The most significant change in the underestimation margin was recorded in Singapore (up $ 16).
We expect global bunker prices may continue firm upward trend today: 380 HSFO: plus 6-9 USD/MT, VLSFO – plus 8-12 USD/MT, MGO LS – 7-14 USD/MT.