MABUX: High volatility remains in Global bunker market on Feb. 25
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) shot up amid military confrontation in Ukraine on Feb.24:
380 HSFO – USD/MT – 623.94 (+23.24)
VLSFO – USD/MT – 788.38 (+24.49)
MGO – USD/MT – 909.18 (+29.10)
The high volatility in the bunker market and sharp changes of price indices affected considerably the correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark). On February 24, the MABUX MBP/DBP Index showed an overcharge of all fuel grades at all selected ports. 380 HSFO fuel overprice levels were: Rotterdam – plus $34 (minus $3 the day before), Singapore – plus $1 (minus $31), Fujairah – plus $13 (minus $32) and Houston – plus $48 (plus $35). The most significant changes were registered in Rotterdam, Singapore and Fujairah – 380 HSFO’s overprice soared by 37, 32 and 45 points.
VLSFO overcharge margins at all selected ports, according to the MABUX MBP/DBP Index, also rose sharply on February 24: in Rotterdam – plus $61 (plus $6 a day earlier), in Singapore – plus $48 (plus $27), in Fujairah – plus $95 (plus $37) and in Houston – plus $39 (plus $30). The most significant change was the growth of the VLSFO overprice ratio in Fujairah by 58 points.
MGO LS, according to the MABUX MBP / DBP Index, moved into the overprice zone on February 24 at all selected ports: Rotterdam – plus $ 41 versus minus $ 22 a day earlier, Singapore – plus $ 7 (minus $ 8), Fujairah – plus $ 64 ( plus $22) and Houston plus $67 (plus $68).
It is expected that abrupt transition of the MABUX MBP/DBP Index to the overprice zone is temporary, and these changes will be levelled as the bunker market further balances.
We expect global bunker prices to continue rising today while the market stays highly volatile: 380 HSFO – plus 5-12 USD, VLSFO – plus 5-15 USD, MGO LS – plus 15-22 USD.