MABUX: Global bunker indices to keep rising on August 12
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued upward evolution on Aug. 11:
380 HSFO – USD/MT – 623.76 (+23.91)
VLSFO – USD/MT – 858.37 (+21.23)
MGO – USD/MT – 1 148.13 (+20.11)
As of August 11, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. MABUX digital bunker price benchmark) showed a decrease of underpricing ratio in the HSFO segment, continued growth of overcharge margins in the VLSFO segment and no firm trend in the MGO LS segment.
380 HSFO fuel grade, according to MDI, remained underpriced on August 11 in three ports out of four selected: Houston was still the only overpriced port: plus $50 versus plus $43 the day before. In other ports, the underestimation premium was: Rotterdam – minus $42 (vs. minus $57 a day earlier), Singapore – minus $72 (minus $93) and Fujairah – minus $82 (minus $107). Fuel underpricing premium continued to decline moderately, while overpricing one slightly increased.
There were no notable changes registered by MDI in the VLSFO segment: fuel grade remained overvalued on August 11 in all four selected ports: Rotterdam – plus $ 44 (plus $ 40 a day earlier), Singapore – plus $ 81 (plus $ 54), Fujairah – plus $143 (plus $132) and Houston – plus $63 (no change). The VLSFO overprice premium continued to grow slightly.
In the MGO LS segment, Rotterdam returned to the overcharge zone on August 11 and joined Fujairah and Houston: plus $19 versus minus $37 the day before. The overprice premium in Fujairah was plus $242 (plus $241), while in Houston – plus $26 (plus $5). Singapore remains the only undervalued port: minus $18 versus minus $41 a day earlier. Thus, in the MGO LS segment, fuel overpricing ratio grew, while underpricing in Singapore decreased.
We expect Global bunker indices to keep rising on August 12: 380 HSFO – plus 8-14 USD/MT, VLSFO – plus 10-18 USD/MT, MGO LS – plus 12-20 USD/MT.