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 upward changes on October 06:

380 HSFO: USD/MT – 517.05 (+12.18)
VLSFO: USD/MT – 805.14 (+16.35)
MGO: USD/MT – 1 185.46 (+38.04)

380 HSFO fuel grade, according to MDI (comparison MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark), were undervalued on October 06 in all selected ports. The underestimation premium was registered as: Rotterdam – minus $110 (minus $107 the day before), Singapore – minus $154 (minus $149 the day before), Fujairah – minus $166 (minus $162 the day before), in Houston – by minus $97 (minus $106 the day before). The underestimation level declined in all selected ports except of Houston. The most significant changes were registered in Houston, where the undercharge level decreased by 9.

In the VLSFO fuel grade segment, two out of four selected ports, according to the MDI index, were in the overcharge zone: Singapore – plus $70 (plus $58 the day before), Fujairah – plus $51 (plus $60 the day before. In Rotterdam this fuel grade remained undercharged by minus $20 (minus $17 the day before) and Houston – by minus $5 (minus $8 the day before). As per MDI – no firm trend in the VLSFO segment registered: the MDI level declined in two out of four selected ports. The most significant changes were registered in Singapore, where the overcharge level increased by 12 points.

MGO LS was undercharged in three out of four selected ports: in Rotterdam – by minus $165 (minus $137 the day before), in Singapore – by minus $171 (minus $144 the day before), in Houston – by minus $15 (minus $2 the day before). This fuel grade was overcharged in Fujairah – by plus $72 (plus $76 the day before). MDI index in MGO LS segment also decreased in all selected ports. The most significant changes were registered in Rotterdam and Singapore, where the undercharge level rose by 28 and 27 points respectively.

We expect Global bunker prices may continue to rise on October 07: the price for 380 HSFO may increase by 3-5 USD/MT, VLSFO – by 4-8 USD/MT, MGO LS – may rise by 5-15 USD/MT.

Source: www.mabux.com