MABUX: Global bunker indices to drift lower on May 18
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into the phase of irregular changes as of May 17:
380 HSFO – USD/MT – 744.52 (+10.40)
VLSFO – USD/MT – 974.44 (+25.29)
MGO – USD/MT – 1 263.36 (-10.72)
The correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark) on May 17 showed mostly overestimation in all selected ports. In particular, in the 380 HSFO fuel segment, the overprice premium was registered as: Rotterdam – plus $14 (plus $10 a day earlier), Singapore – plus $37 (plus $33), Fujairah – plus $19 (plus $29) and Houston – plus $54 (plus $67). Here, the MABUX MBP/DBP Index (MDI) did not have any firm trend: overprice premium rose in Rotterdam and in Singapore, but fell in Fujairah and Houston. Meantime, the overcharge margins in the 380 HSFO fuel segment are coming closer to the 100% MDI correlation mark.
In the VLSFO segment, the MDI index registered an overpricing on May 17 in three out of four ports selected: Houston moved into the underestimation area: minus $ 10 versus plus $ 13 the day before. In other ports, VLSFO fuel overcharge premiums were: Rotterdam – plus $23 (vs. plus $4), Singapore – plus $60 (plus $39), Fujairah – plus 39 (unchanged). Here, too, there was no registered any firm MDI’s direction: overcharge increased in Rotterdam and Singapore, dropped in Houston, and remained unchanged in Fujairah.
In the MGO LS segment, MDI index registered an overcharge on May 17 in all selected ports: Rotterdam – plus $ 27 versus plus $ 14 the day before, Singapore – plus $ 60 (plus $ 45), Fujairah – plus $ 210 (plus $ 192) and Houston – plus $93 (plus $114). The most overpriced MGO LS fuel grade remains in Fujairah, where the MDI index exceeds the $200 mark.
We expect bunker prices to slide downwards today: 380 HSFO – minus 5-10 USD / MT, VLSFO – minus 5-15 USD / MT, MGO LS – minus 2-28 USD/MT.