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MABUX: Global bunker prices to decline sharply on Jul.06

MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into slight downward trend on July 05:

380 HSFO – USD/MT – 711.05 (-4.44)
VLSFO – USD/MT – 1 067.86 (-1.51)
MGO – USD/MT – 1 342.94 (-1.12)

MABUX Market/Digital Bunker Index (MDI) (comparison of market bunker prices vs. MABUX digital bunker price benchmark) on July 05 stayed in a phase of irregular fluctuations. 380 HSFO fuel grade remained undervalued in three out of four ports selected: in Rotterdam – minus $ 75 (versus minus $ 58 a day earlier), Singapore – minus $ 123 (minus $ 100) and in Fujairah – minus $ 82 (minus $ 63). Houston remains the only port with 380 HSFO overvalued: plus $7 (plus $29). Fuel underprice premium continued to grow slightly in all three ports. In Houston, the overprice ratio fell by 22 points.

In the VLSFO grade segment, the MDI index registered an overpricing on July 05 in all four selected ports: Rotterdam – plus $ 72 (plus $ 94 the day before), Singapore – plus $ 267 (plus $ 282), Fujairah – plus $ 282 (plus $ 306) and Houston – plus $53 (plus $70). The overprice premium across all ports has declined slightly, while the VLSFO is still the most overpriced fuel grade.

In the MGO LS fuel segment, the MDI index on July 05 showed a gradual decrease of overestimation premium and the transition of two ports into the underprice zone. In particular, Rotterdam and Singapore are in the undercharge zone – minus $ 13 (versus minus $ 3 the day before) and minus $ 20 (plus $ 4) accordingly, while Fujairah and Houston remain in the overprice zone – plus $ 212 (plus $ 225) and plus $88 (plus $119) accordingly.

We expect global bunker indices to plunge today: 380 HSFO – minus 10-40 USD / MT, VLSFO – minus 10-50 USD / MT, MGO LS – minus 20-60 USD/MT.

Source: Mabux.com

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