MABUX: Global bunker prices may turn into upward correction on Aug.06
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) showed firm downward trend on Aug.05:
380 HSFO – USD/MT – 446.50 (-6.20)
VLSFO – USD/MT – 544.32 (-8.74)
MGO – USD/MT – 638.70 (-8.22)
The MABUX ARA LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, continued sliding on August 06: 916.96 USD/MT (minus 0.84 USD). The LNG Bunker Index exceeds the cost of MGO LS in the port of Rotterdam by 356.96 USD (560 USD/MT as of August 05), the difference in price compared to the day before increased by 13.16 USD. LNG bunker indices are available at www.mabux.com.
As of 05 August, a correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (Digital Bunker Prices Benchmark) in four largest global hubs showed that 380 HSFO fuel was undervalued in all selected ports, except for Fujairah, where MBP/DBP Index showed a 100 percent correlation. The rest of the ports underestimated: minus $ 12 in Houston (minus $ 18 the day before), minus $ 36 (minus $ 29) in Rotterdam and minus $ 33 (minus $ 34) in Singapore.
VLSFO, according to the MABUX DBP Index, was also underestimated in all selected ports on 05 August. The VLSFO underpricing was: minus $ 1 in Houston (minus $ 9 the day before), minus $ 16 (minus $ 28) in Fujairah, minus $ 29 (minus $ 31) in Singapore and minus $ 20 (minus $ 22) in Rotterdam. Underestimation ratio declined in all ports, while Houston approached a 100 percent correlation mark.
As of August 05, MABUX DBP Index also registered the underpricing of MGO LS at all selected ports: in Houston – minus $ 13 (minus $ 26 the day before), in Rotterdam – minus $ 61 (minus $ 57 the day before), minus $ 74 (no changes) in Singapore and minus $ 56 (minus $ 61) in Fujairah. The most significant change of MGO LS’s MABUX MBP/DBP Index was the shortening of underpricing in Houston by $ 13.
We expect global bunker prices may turn into upward correction today: 380 HSFO – plus 3-5 USD/MT, VLSFO – plus 5-7 USD/MT, MGO LS – plus 3-10 USD/MT.