MABUX: Global bunker indexes to continue slight downward trend on Dec 14

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) did not have the firm trend and changed irregular on December 13:

380 HSFO / USD/MT – 478.34 (+3.57)
VLSFO / USD/MT – 605.57 (-7.03)
MGO / USD/MT – 729.65 (-0.67)

Gas prices in Europe have resumed upward trend in recent days. As a result, prices for LNG as a marine fuel at the port of Sines (Portugal) on December 13 rose by 420 USD to 2,575 USD / MT (versus 2,155 USD / MT a week earlier). The price of bunker LNG exceeds the price of MGO LS in the port of Sinesh by USD 1,870 (USD 705 / MT as of December 13). LNG is still not cost competitive with traditional bunker fuels.

Correlation of MABUX MBP Index (Market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark) on December 13 showed an underestimation of 380 HSFO fuel in three out of four ports, with the exception of Houston, where fuel was overvalued by $ 5 ($ 6 the day before). In other ports, the underpricing ratio was: in Rotterdam – minus $ 1 (minus $ 4 a day earlier), in Singapore – minus $ 12 (minus $ 11) and in Fujairah – minus $ 3 (100% correlation the day before). Overall, the MABUX MBP / DBP Index for 380 HSFO fuel remains close to 100 percent correlation in all ports.

VLSFO, according to the MABUX MBP / DBP Index, was overvalued on December 13 in all selected ports, but the overcharge margins continued to decline: in Rotterdam – plus $ 19 (unchanged the day before), in Singapore – plus $ 54 (plus $ 56) , in Fujairah – plus $ 47 (plus $ 54) and in Houston plus $ 18 (plus $ 33).

As for MGO LS, according to the MABUX MBP / DBP Index, this fuel grade was underestimated on December 13 in three of the four ports selected: in Rotterdam – minus $ 31 (minus $ 43 the day before), in Singapore – minus $ 9 (minus $ 20) and in Houston – minus $ 11 (minus $ 17). Fujairah remains the only port where the MABUX MBP / DBP Index registers a $ 50 overpricing (plus $ 43 a day earlier). Correlation levels of the MABUX MBP / DBP Index for MGO LS fuel did not show significant changes.

We expect global bunker prices to continue sliding down today: 380 HSFO – minus 2-4 USD, VLSFO – minus 2-5 USD, MGO LS – 0 – plus-minus 2-5 USD.

Source: www.mabux.com