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

MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued firm downward movement on April 07:

380 HSFO – USD/MT – 702.87 (-15.95)
VLSFO – USD/MT – 923.63 (-22.94)
MGO – USD/MT – 1 135.70 (-23.56)

The correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark) on April 07 showed that 380 HSFO fuel grade remained overpriced in all four major ports: Rotterdam – plus $90 (plus $78 a day earlier), Singapore – plus $96 (plus $77), Fujairah – plus $89 (plus $68) and Houston – plus $87 (plus $62). Overcharge margins in all ports continued to grow slightly.

In the VLSFO segment, the MABUX MBP/DBP Index also registered an overpricing on April 07 in all four selected ports: Rotterdam – plus $137 (versus plus $115 a day earlier), Singapore – plus $69 (plus $47), Fujairah – plus $103 (plus $66) and Houston plus $142 (plus $106). There was a significant increase in fuel overpricing ratio.

MGO LS, according to the MABUX MBP/DBP Index, was also in the overcharge zone in all ports on April 07: Singapore finally registered an overprice of this fuel grade by plus $ 4 versus minus $ 2 a day earlier. In other ports, fuel overcharge margins were: Rotterdam – plus $47 (plus $72), Fujairah – plus $59 (plus $100) and Houston – plus $139 (plus $104).

In general, significant overcharge levels of bunker fuel in all ports means that the rate of price reduction significantly lags behind Brent and WTI oil futures in the global oil market.

We expect bunker fuel prices to continue moderate decline today: 380 HSFO – minus 1-5 USD / MT, VLSFO – minus 1-5 USD / MT. MGO LS can fall more significantly – minus 15-45 USD/MT.

Source: www.mabux.com