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 slight upward evolution on Jan.11:
380 HSFO – USD/MT – 513.64 (+0.82)
VLSFO – USD/MT – 647.11 (+1.69)
MGO – USD/MT – 769.89 (+2.21)
Correlation of MABUX MBP Index (Market bunker price) vs MABUX DBP Index (MABUX digital bunker price benchmark) on January 11 showed an overcharge of 380 HSFO in three out of four selected ports: in Rotterdam – plus $ 5 (100% index correlation the day before), in Fujairah – plus $ 6 (plus $ 1 the day before) and in Houston – plus $ 20 (plus $ 13). The MABUX MBP / DBP Index has recorded an underestimation of 380 HSFO fuel at only one port: at Singapore – minus $ 10 (minus $ 13).
VLSFO, according to the MABUX MBP / DBP Index, was overvalued on January 11 at all four ports selected: in Rotterdam – plus $ 2 (plus $ 8 the day before), in Singapore – plus $ 59 (plus $ 48), in Fujairah – plus $ 49 (plus $ 39) and in Houston – plus $ 8 (minus $ 9). The most significant change was the 17-point increase of the VLSFO overcharge ratio at the Port of Houston. VLSFO is currently the most overpriced fuel in the global bunker market.
As for MGO LS, this fuel grade was underestimated on January 11 at two out of four ports selected, according to the MABUX MBP / DBP Index: in Rotterdam – minus $ 32 (minus $ 39 the day before) and in Singapore – minus $ 25 (minus $ 30). Fujairah and Houston registered an overpricing of MGO LS by $ 13 (plus $ 11) and $ 2 (minus $ 2), respectively. MABUX MBP / DBP Index has no firm trend in the MGO LS segment so far.
A flotilla of liquefied natural gas (LNG) from the US has finally arrived in Europe, increasing LNG imports to Europe to a two-year high. Fresh supplies of LNG are helping to ease supply woes but stockpiles are still at very low levels for this time of year. The price of LNG as marine fuel at the port of Sines (Portugal) on January 10 decreased by 39 USD to 2397 USD / MT, nevertheless more than three times higher than the price of MGO LS (762 USD / MT as of January 11).
We expect global bunker prices to continue firm upward trend today: 380 HSFO – plus 13-18 USD, VLSFO – plus 13-19 USD, MGO LS – plus 15-20 USD.