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) drifted lower on January 25:
380 HSFO – USD/MT – 539.32 (-2.91)
VLSFO – USD/MT – 689.77 (-5.37)
MGO – USD/MT – 816.13 (-5.30)
The situation on the European gas market has somewhat stabilized over the past week, although the threat of a conflict escalation in Ukraine still keeps price indices high. The price of LNG as bunker fuel at the port of Sines (Portugal) on January 24 was 2333 USD/MT (up 18 USD compared to the previous week). The price of LNG still significantly exceeds the prices of traditional bunker fuels (MGO LS – 805 USD/MT as of 25.01).
The correlation of MABUX MBP Index (Market bunker price) vs MABUX DBP Index (MABUX digital bunker price benchmark) on January 25 showed that 380 HSFO fuel grade was overpriced in three ports out of four selected: in Rotterdam – plus $ 16 (plus $ 10 the day before), in Fujairah – plus $ 16 (an underestimation of $ 1 a day earlier) and in Houston – plus $ 30 (plus $ 17). Overcharge levels begin again to grow moderately. The only port where the MABUX MBP/DBP Index registered 380 HSFO’s underpricing is Singapore – minus $3 (minus $11).
VLSFO, according to the MABUX MBP / DBP Index, remained overvalued on January 25 in all four selected ports: in Rotterdam – plus $ 42 (plus $ 34 a day earlier), in Singapore – plus $ 49 (plus $ 41), in Fujairah – plus $ 52 (plus $42) and in Houston plus $20 (plus $15). Overcharge margins for VLSFO at all selected ports continue to grow moderately.
As for MGO LS, this fuel grade, according to the MABUX MBP/DBP Index, was undervalued on January 25 in three ports out of four selected: in Rotterdam – minus $ 4 (minus $ 16 a day earlier), in Singapore – minus $ 14 (minus $26) and in Fujairah – minus $3 (minus $14). In Houston, the MABUX MBP/DBP Index recorded an overpricing by $30 (plus $36 a day earlier). In MGO LS segment there is a trend towards narrowing of underestimation margins and a gradual transition of indices to the overpricing zone.
We expect global bunker prices to edge up today: 380 HSFO – plus 5-10 USD, VLSFO – plus 6-11 USD, MGO LS – plus 7-12 USD.