MABUX: Global bunker indexes to turn to firm upward trend on Dec. 07
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) did not have firm trend on Dec. 06:
380 HSFO – USD/MT – 461.56 (+0.17)
VLSFO – USD/MT – 599.37 (-0.52)
MGO – USD/MT – 712.50 (+4.35)
There is slight downward correction in the European gas market. As a result, the price of LNG as a marine fuel at the port of Sines (Portugal) on December 6 decreased by 241 USD and reached 2155 USD / MT (vs. 2396 USD / MT a week ago). The LNG price exceeds the price of MGO LS in the port by 1481 USD (664 USD / MT as of 06.12), which still leaves LNG unattractive for the shipowners planning to switch to alternative fuels.
Correlation of MABUX MBP Index (Market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark) on December 06 showed an overestimation of 380 HSFO fuel grade in three out of four selected ports, with the exception of Singapore, where 100% percent correlation of both indices was recorded (minus $ 1 a day earlier ). In other ports, the overpricing margins were registered as: in Rotterdam – plus $ 4 (plus $ 3 the day before), in Fujairah – plus $ 21 (plus $ 11) and in Houston – plus $ 51 (unchanged).
VLSFO, according to the MABUX MBP / DBP Index, was significantly overvalued on December 06 in all selected ports: in Rotterdam – plus $ 41 (unchanged from the day before), in Singapore – plus $ 97 (plus $ 98), in Fujairah – plus $ 78 (plus $ 66) and in Houston – plus $ 37 (plus $ 45). VLSFO fuel is currently the most overpriced grade of all major bunker fuels according to MABUX MBP / DBP.
As for MGO LS, according to the MABUX MBP / DBP Index, this fuel grade was underestimated on December 06 at two ports out of four selected: in Rotterdam – minus $ 39 (minus $ 40 the day before) and in Singapore – minus $ 16 (minus $ 13 ). In Fujairah and Houston, the MABUX MBP / DBP Index recorded an overcharge of $ 64 (plus $ 53) and $ 15 (plus $ 16), respectively. Correlation levels of the MABUX MBP / DBP Index for MGO LS fuel grade have not changed significantly.
We expect global bunker prices to demonstrate firm upward trend today: 380 HSFO – plus 12-16 USD, VLSFO – plus 14-18 USD, MGO LS – plus 3-18 USD.