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) declined sharply on September 07:

380 HSFO – USD/MT – 548.71 (-15.52)
VLSFO – USD/MT – 811.54 (-15.23)
MGO – USD/MT – 1 189.82 (-20.82)

As of September 07, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) did not register a single trend in the HSFO and VLSFO segments, but growth of MGO LS overcharge premium in Fujairah.

According to MDI, 380 HSFO fuel grade remained underpriced on September 07 in all four selected ports. The undercharge premium was: Rotterdam – minus $98 (minus $84 the day before), Singapore – minus $120 (minus $123), Fujairah – minus $127 (minus $135), Houston – minus $33 (minus $21). MDI did not have a single trend in this fuel segment: underpricing increased in Rotterdam and Houston, but dropped in Singapore and Fujairah.

In the VLSFO segment, all ports were still in the overcharge zone on September 07: Rotterdam – plus $ 20 versus plus $ 17 a day earlier, Singapore – plus $ 28 (plus $ 15), Fujairah – plus $ 51 (plus $ 37) and Houston, plus $29 (plus $42). Overcharge premium rose in all ports except Houston.

In the MGO LS segment, the Rotterdam-Singapore pair was still undervalued by minus $41 (minus $84 a day earlier) and minus $83 (minus $113), respectively, while the Fujairah-Houston pair was overvalued by plus $170 (plus $120) and plus $17 (plus $6). In the MGO LS segment, the undercharge ratio decreased, while the overcharge increased. The MDI index showed the most significant change in Fujairah – an overprice up by 50 points.

We expect global bunker indices to turn into irregular changes with no firm trend on Sep.08: 380 HSFO – minus 10-25 USD/MT, VLSFO – minus 10-35 USD/MT, MGO LS – plus 3-15 USD/MT.

Source: www.mabux.com