MABUX: Global bunker prices to decline in the beginning of the week
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose slightly on Dec. 17:
380 HSFO – USD/MT – 477.65 (+1.88)
VLSFO – USD/MT – 611.66 (+0.36)
MGO – USD/MT – 724.12 (+0.87)
Correlation of MABUX MBP Index (Market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark) on December 17 showed an underestimation of 380 HSFO fuel in three out of four ports selected, with the exception of Rotterdam, where fuel grade was overcharged by $ 2 ($ 6 the day before). In other ports, the underestimation margins were: in Singapore – minus $ 10 (minus $ 2), in Fujairah – minus $ 9 (100% correlation the day before) and in Houston – minus 6 (100% correlation). MABUX market and digital price indices for 380 HSFO fuel are practically on the same level.
VLSFO, according to the MABUX MBP / DBP Index, was significantly overvalued on December 17 in all selected ports, although the overestimation premium decreased slightly: in Rotterdam – plus $ 21 (plus $ 28 the day before), in Singapore – plus $ 58 (plus $ 61), Fujairah plus $ 55 (plus $ 64) and Houston plus $ 17 (plus $ 25).
As for MGO LS, according to the MABUX MBP / DBP Index, this fuel grade was underestimated on December 17 at three of the four ports selected: in Rotterdam – minus $ 42 (minus $ 26 the day before), in Singapore – minus $ 24 (minus $ 5) and in Houston – minus $ 23 (minus $ 9). Fujairah remains the only port where the MABUX MBP / DBP Index recorded a $ 40 overpricing (plus $ 61 a day earlier). The most significant change was the drop of fuel overcharge at the port of Fujairah by 21 points.
We expect global bunker prices to decline today: 380 HSFO – in a arrange of minus 5-8 USD, VLSFO – minus 7-11 USD, MGO LS – minus 10-14 USD.