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MABUX: Global bunker prices may continue firm downward trend on Aug 05


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) continued downward trend on Aug.04:

380 HSFO – USD/MT – 452.70 (-1.75)
VLSFO – USD/MT – 553.06 (-3.94)
MGO – USD/MT – 646.92 (-3.81)

The MABUX ARA LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, decreased slightly on August 05: 917.80 USD/MT (minus 1.86 USD). The LNG Bunker Index exceeds the cost of MGO LS in the port of Rotterdam by 343.80 (574 USD/MT as of 04 August), the difference in price compared to the day before increased by 3.14 USD. LNG bunker indices are available at www.mabux.com.

As of August 04, 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 remained undervalued in all selected ports: minus $ 18 in Houston (minus $ 19 the day before), minus $ 11 (minus $ 16) in Fujairah, minus $ 29 (minus $ 35) in Rotterdam and minus $ 34 (unchanged) in Singapore.

VLSFO, according to the MABUX DBP Index, was also underestimated in all selected ports on 04 August. The VLSFO underpricing was minus $ 9 in Houston (minus $ 10 the day before), minus $ 28 (minus $ 27) in Fujairah, minus $ 31 (minus $ 29) in Singapore and minus $ 22 (minus $ 23) in Rotterdam. Underestimation margins for all ports hasn’t had significant changes.

On August 04, MABUX DBP Index also registered the underpricing of MGO LS at all selected ports: in Houston – minus $ 26 (unchanged), in Rotterdam – minus $ 57 (minus $ 56 the day before), minus $ 74 (minus $ 75) in Singapore and minus $ 61 (minus $ 64) in Fujairah. The MABUX MBP / DBP Index correlation for MGO LS fuel has remained steady.

We expect global bunker prices may continue firm downward trend today: 380 HSFO: minus 10-13 USD/MT, VLSFO minus 14-17 USD/MT, MGO LS – minus 10-16 USD/MT.

Source: www.mabux.com

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