The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

MABUX: Global bunker prices to decrease slightly today after a sharp rise the previous day.

MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned over to firm uptrend on March 25:

380 HSFO – USD/MT – 745.74 (+21.11)

VLSFO – USD/MT – 969.13 (+20.37)

MGO – USD/MT – 1 197.42 (+36.56)

The correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark) on March 24 showed that 380 HSFO fuel grade remained overpriced in two out of four ports selected: Rotterdam – plus $11 (plus $33 the day before) and Houston – plus $49 (plus $77). In Singapore and Fujairah, the MABUX MBP/DBP Index registered 380 HSFO’s underpricing by minus $10 (100% correlation the day before) and minus $17 (plus $11), respectively.

In the VLSFO segment, the MABUX MBP/DBP Index also registered a decline of overcharge margins in all ports selected: Rotterdam – plus $ 39 (versus plus $ 68 a day earlier), Fujairah – plus $ 24 (plus $ 64) and Houston – plus $ 57 ( plus $ 85), and Singapore eventually turned over to the underpricing zone: minus $ 2 (plus $ 16). The most significant reduction was marked at Fujairah – 40 points.

MGO LS, according to the MABUX MBP/DBP Index, was significantly undervalued on March 24 in two out of four selected ports: Rotterdam – minus $45 (minus $20 a day earlier) and Singapore – minus $133 (minus $86). In Fujairah and Houston, the MABUX MBP/DBP Index still registered an overcharge of the MGO LS by $8 (plus $31) and $10 (plus $37), respectively.

A gradual movement towards underestimation continues in all the segments of bunker fuel.

We expect bunker fuel prices to decrease slightly today after a sharp rise the previous day: 380 HSFO – minus 8-15 USD/MT, VLSFO – minus 10-20 USD/MT, MGO LS – plus-minus 5-15 USD/MT.

Source: mabux.com