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) turned into downward correction on Feb 16:

380 HSFO – USD/MT – 585.76 (-12.88)
VLSFO – USD/MT – 749.95 (-12.59)
MGO – USD/MT – 882.26 (-2.45)

The correlation of MABUX MBP Index (Market bunker price) vs MABUX DBP Index (MABUX digital bunker price benchmark) on February 16 showed that 380 HSFO fuel grade remained overpriced in one port out of four selected: in Rotterdam, the MABUX MBP/DBP Index registered an overcharge by $ 12 (plus $2 the day before). All other ports are underestimated: Singapore – minus $17 (minus $22 a day earlier), Fujairah – minus $8 (minus $19) and Houston – minus $4 (minus $15). The MABUX MBP/DBP Index for 380 HSFO fuel grade is gradually shifting towards overprice zone.

VLSFO, according to the MABUX MBP/DBP Index, was overvalued on February 16 in all selected ports. VLSFO overprice margins were registered as: in Rotterdam – plus $38 (vs. plus $25 the day before), in Singapore – plus $50 (plus $31), in Fujairah – plus $58 (plus $38) and in Houston – plus $8 (minus $ 19). All ports recorded a significant growth of overprice ratio over the past day, including Singapore – by 19 points and Fujairah – by 20 points.

MGO LS, according to the MABUX MBP/DBP Index, was underpriced on February 16 in two out of four ports selected: Fujairah – plus $15 (minus $1 a day earlier) and Houston – plus $39 (plus $23). In the rest two ports: Rotterdam and Singapore, MABUX MBP/DBP Index registered 100% correlation (versus minus $5 and minus $14 the day before, respectively).

We expect global bunker prices may rise slightly but to turn to downward correction in the end of the day: 380 HSFO – plus 5-8 USD, VLSFO – plus 6-9 USD, MGO LS – plus-minus 5-15 USD.

Source: www.mabux.com