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 firm upward trend on Feb.14:

380 HSFO – USD/MT – 590.82 (+15.96)
VLSFO – USD/MT – 756.04 (+20.52)
MGO – USD/MT – 880.02 (+17.21)

LNG prices have begun to rise again in European markets. In particular, the price of LNG as a bunker fuel at the port of Sines (Portugal) on February 14 rose by 112 USD to 2329 USD/MT versus 2217 USD/MT last week. LNG prices are still significantly higher than those of traditional bunker fuel grades. The price index of MGO LS at the port of Sines was at around 878 USD/MT on February 14.

The correlation of MABUX MBP Index (Market bunker price) vs MABUX DBP Index (MABUX digital bunker price benchmark) on February 14 showed that 380 HSFO fuel grade remained overpriced in only one port out of four selected: in Rotterdam, the MABUX MBP / DBP Index registered an overpricing of $ 8 (plus $6 the day before). All other ports are underestimated: Singapore – minus $24 (minus $22 a day earlier), Fujairah – minus $13 (minus $6) and Houston – minus 13 (plus $4). The most significant change was recorded in Houston – minus 17 points.

VLSFO, according to the MABUX MBP/DBP Index, was overvalued on February 14 in all selected ports. VLSFO overprice margins were registered as: in Rotterdam – plus $30 (plus $33 a day earlier), in Singapore – plus $38 (plus $44), in Fujairah – plus $46 (plus $45) and in Houston – plus $3 (plus $19). All ports, with the exception of Fujairah, show a moderate decline in overprice margins.

MGO LS, according to the MABUX MBP/DBP Index, was underpriced on February 14 in two out of four selected ports versus three ports the day before: Fujairah returned to the overcharge zone with plus $1 (minus $8 the day before). Houston also remains overpriced – plus $24 (plus $35). In Rotterdam and Singapore, the MABUX MBP/DBP Index registered an undervaluation of MGO LS fuel grade by $2 (minus $28) and $6 (minus $24), respectively. In the MGO LS fuel segment, the trend for a gradual shift towards overpricing continues.

We expect global bunker prices to continue firm upward evolution today: 380 HSFO – plus 9-14 USD, VLSFO – plus 10-15 USD, MGO LS – plus 10-15 USD.

Source: www.mabux.com