Global bunker prices may slide slightly down 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) continued upward trend on January 20:

380 HSFO – USD/MT – 545.50 (+1.44)
VLSFO – USD/MT – 695.90 (+0.51)
MGO – USD/MT – 818.10 (+1.03)

The correlation of MABUX MBP Index (Market bunker price) vs MABUX DBP Index (MABUX digital bunker price benchmark) on January 20 showed an overcharge of 380 HSFO in two out of four ports selected: in Rotterdam – plus $ 2 (plus $ 8 the day before) and in Houston – plus $12 (plus $23). In Singapore and Fujairah, the MABUX MBP/DBP Index recorded an underpricing of 380 HSFO by $13 (minus $11) and $12 (minus $8), respectively. Overcharge margins in Rotterdam and Houston are gradually decreasing.

VLSFO, according to the MABUX MBP/DBP Index, was overvalued on January 20 in three of the four selected ports: in Rotterdam – plus $ 31 (plus $ 35 the day before), in Singapore – plus $ 39 (plus $ 44) and in Fujairah – plus $ 44 (plus $49). Overcharge ratio at three ports declined moderately. Houston remains the only port where the MABUX MBP/DBP Index registered a $16 overpricing of VLSFO (minus $ 2 the previous day).

As for MGO LS, this type of fuel grade, according to the MABUX MBP/DBP Index, was undervalued on January 20 in three of the four ports selected: in Rotterdam – minus $ 23 (minus $ 10 a day earlier), in Singapore – minus $ 27 (minus $20) and in Fujairah – minus $28 (minus $22). All three ports showed a moderate increase of the underpricing levels. In Houston, the MABUX MBP/DBP Index registered an overcharge of the MGO LS by $9 (plus $10 a day earlier).

We expect global bunker prices may slide slightly down today: 380 HSFO – 0 – minus 6 USD, VLSFO – 0 – minus 8 USD, MGO LS – minus 2-6 USD.

Source: www.mabux.com