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 irregular changes as of May 11:

380 HSFO – USD/MT – 718.62 (-12.23)
VLSFO – USD/MT – 933.73 (-4.16)
MGO – USD/MT – 1 267.92 (+0.59)

The correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark) on May 11 showed an overcharge in all selected ports, except for Rotterdam (MGO LS segment). In particular, the overpricing for 380 HSFO fuel was registered as: Rotterdam – plus $29 (plus $24 the day before), Singapore – plus $85 (plus $88), Fujairah – plus $113 (plus $94) and Houston – plus $123 (plus $107). Here, MABUX MBP/DBP Index (MDI) did not have any firm dynamics: overcharge premium rose in Rotterdam, Fujairah and Houston, but dropped in Singapore.

In the VLSFO segment, the MDI index also registered an overpricing on May 11 in all four selected ports, while overcharge premium slightly increased. Rotterdam – plus $43 (vs. plus $26 a day earlier), Singapore – plus $74 (plus $49), Fujairah – plus 83 (plus $65) and Houston – plus $77 (plus $68).

In the MGO LS segment, Rotterdam moved over to the fuel undercharge area on May 11: minus $ 10 versus plus $ 73 the day before, while the change in MDI was 83 points. In other ports, the overprice premium was: in Singapore – plus $26 (plus $63 a day earlier), in Fujairah – plus $123 (plus $172) and in Houston – plus $191 (plus $201). Thus, in this fuel’s segment, an overcharge premium is narrowing and is approaching a 100% Index correlation.

We expect bunker prices to turn to upward correction: 380 HSFO – plus 15-25 USD / MT, VLSFO – plus 20-35 USD / MT, MGO LS – plus 3-15 USD/MT.

Source: www.mabux.com