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 upward evolution as of May 31:

380 HSFO – USD/MT – 761.71 (+9.41)
VLSFO – USD/MT – 1 043.17 (+19.18)
MGO – USD/MT – 1 299.56 (+23.46)

MABUX world bunker index for VLSFO fuel stays above the 1000 USD mark and has been growing since May 27.

Correlation of MABUX MBP Index (market bunker prices) vs. MABUX DBP Index (MABUX digital bunker price benchmark) returned to the overcharge area on May 31 for almost all types of fuel and in all ports selected for analysis. In particular, in the 380 HSFO fuel segment, the overprice premium was: Rotterdam – plus $9 (plus $12 the day before), Fujairah – plus $3 (minus $2) and Houston – plus $26 (plus $32). The only port where the MABUX MBP/DBP Index (MDI) registered an underpricing of 380 HSFO is Singapore – minus $61 versus minus $85 a day earlier. Here MDI did not have a firm trend narrowing in in Rotterdam and Houston but widening in Singapore and Fujairah.

In the VLSFO segment, the MDI registered an overpricing on May 31 in all selected ports. The overcharge ratio was: Rotterdam – plus $9 (vs. plus $4 a day earlier), Singapore – plus $203 (plus $190), Fujairah – plus 124 (plus $83), Houston – plus $35 (plus $40). The MDI index also did not have any firm dynamics: the overcharge rose in Rotterdam, Fujairah (over $100) and Singapore (over $200) but slipped in Houston.

MGO LS fuel grade, according to the MDI index, was overvalued in all selected ports: Rotterdam – plus $ 30 versus plus $ 7 the day before, Singapore – plus $ 14 (plus $ 18), Fujairah – plus $ 174 (plus $ 181). Houston returned to the overcharge area, showing plus $ 6 vs. minus $ 3 a day earlier.

We expect bunker prices do not have any firm trend today: 380 HSFO – plus-minus 5-12 USD / MT, VLSFO – plus-minus 7-15 USD / MT, MGO LS – plus-minus 10-40 USD/MT.

Source: www.mabux.com