MABUX: Global bunker market to stay highly unstable on Mar.11
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into sharp downward correction on March 10:
380 HSFO – USD/MT – 730.26 (-31.53)
VLSFO – USD/MT – 995.73 (-36.95)
MGO – USD/MT – 1 185.92 (-85.02)
The correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark) on March 10 showed that 380 HSFO fuel grade remained undervalued in only out of four ports selected: Fujairah – minus $ 11 versus minus $ 47 the day before. All other ports, according to the MABUX MBP/DBP Index, stayed in the overcharge zone: Rotterdam – plus $50 (plus $24), Singapore – plus $37 (minus $24) and Houston – plus $97 (plus $32). The 380 HSFO segment continues to migrate to overcharge zone. The most significant was the growth of overcharge ratio at the port of Houston – by 65 points.
As for VLSFO, on March 10 the MABUX MBP/DBP Index registered a sharp increase in overcharge margins at all ports: Rotterdam – plus $ 155 (vs. plus $ 107 a day earlier), Singapore – plus $ 141 (plus $ 50), Fujairah – plus $ 133 (plus $35) and Houston plus $114 (minus $5). At the same time, in Fujairah and Houston, the MABUX MBP/DBP Index showed a record overprice upswing by 98 and 119 points, respectively. A significant discrepancy between the market and digital indices indicates extremely high volatility in the VLSFO segment.
MGO LS, according to the MABUX MBP/DBP Index, was underpriced on March 10 in only one of four selected ports: Fujairah – minus $6 (minus $280 the day before). In other ports, the overcharge ratio showed a sharp increase and amounted to: Rotterdam – plus $ 74 (plus $ 20), Singapore – plus $ 83 (minus $ 251) and Houston – plus $ 311 (plus $ 51). Due to the high volatility in the market, the MABUX MBP/DBP Index changes were also record-breaking: 334 points in Singapore, 286 points in Fujairah and 362 points in Houston.
We expect global bunker market to stay highly unstable today while irregular fluctuations of bunker indices will prevail: 380 HSFO – plus-minus 5–15 USD/MT, VLSFO – plus-minus 5-20 USD/MT, MGO LS – minus 40-100 USD/MT.