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) edged downwards on Nov.05:
380 HSFO / USD/MT – 507.45 (-1.69)
VLSFO / USD/MT – 634.33 (-2.91)
MGO / USD/MT – 760.05 (-0.99)
As of November 05, 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 grade was undervalued in out of four selected ports: in Rotterdam – minus $ 10 (minus $ 15 the day before) and in Singapore – minus $ 4 (minus $ 18). In Fujairah, the MABUX MBP / DBP Index registered a 380 HSFO’s overcharge by $ 12 (plus $ 9), and in Houston – by $ 11 (100% correlation of the Index a day earlier). The most significant change of the MABUX MBP / DBP Index was registered in Singapore: underpricing down by 14 points.
VLSFO, according to the MABUX MBP / DBP Index, was overpriced on November 05 in all selected ports: in Rotterdam – plus $ 8 (plus $ 3 the day before), in Singapore – plus $ 24 (plus $ 9), in Fujairah – plus $ 38 (plus 28) and in Houston – plus $ 7 (minus $ 6). VLSFO overcharge rates have increased moderately across all ports.
As for the MGO LS, according to the MABUX MBP / DBP Index, this fuel grade was underestimated in two of the four ports selected. The underestimation margins were registered as: in Rotterdam – minus $ 51 (minus $ 40 the day before) and in Singapore – minus $ 31 (minus $ 25). At the same time, the MABUX MBP / DBP Index registered an overcharge of MGO LS in Fujairah – by plus $ 9 (unchanged from the previous day) and in Houston – by plus $ 20 (minus $ 13).
We expect global bunker prices may rise sharply today: 380 HSFO – plus 8-14 USD/MT, VLSFO – plus 15-19 USD/MT, MGO LS – plus 10-15 USD/MT.