Global bunker indices to continue irregular changes with no firm trend

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) did not have a firm trend and changed irregular as of June 07:

380 HSFO – USD/MT – 767.75 (-9.04)
VLSFO – USD/MT – 1 082.29 (+1.98)
MGO – USD/MT – 1 379.12 (+12.82)

MABUX world bunker index for VLSFO fuel still stays well above the 1000 USD mark.

MABUX Market/Digital Index (MDI) (comparison of market bunker prices vs. MABUX digital bunker price benchmark) on June 07 showed irregular changes, while some fuel grades were still underestimated. In particular, 380 HSFO fuel was undervalued in Rotterdam by minus $18 (minus $2 a day earlier), Singapore by minus $68 (minus $60) and in Fujairah by minus $6 (plus $3). Houston remains the only port where this type of fuel was overpriced by plus $24 (plus $12). MDI did not have any firm trend in 380 HSFO segment: underestimation increased in Rotterdam, Singapore and Fujairah, and fuel overestimation rose in Houston.

In the VLSFO segment, the MDI index registered an overcharge on June 07 in all four selected ports: Rotterdam – plus $ 60 (versus plus $ 61 the day before), Singapore – plus $ 214 (plus $ 220), Fujairah – plus $ 160 (plus $ 173) and Houston – plus $30 (plus $34). VLSFO remains the most overvalued fuel grade at the moment, while overprice premium across all selected ports slightly declined.

In the MGO LS fuel grade segment, MDI showed some growth in undervaluation premium in Rotterdam (minus $ 36 vs. minus $ 18 a day earlier) and Singapore (minus $ 52 vs. minus $ 46), while the overpricing decreased in Fujairah (plus $ 97 vs. $ 132) and Houston (plus $23 vs plus $58). The most significant change was a 35-point reduction in overcharge margin in Fujairah and Houston.

We expect global bunker indices to continue irregular changes with no firm trend: 380 HSFO – plus 3-6 USD / MT, VLSFO – plus 4-8 USD / MT, MGO LS – minus 10-16 USD/MT.

Source: www.mabux.com