MABUX: No firm trend on Global bunker market on Feb.11
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) changed sideways with no firm trend on Feb.10:
380 HSFO – USD/MT – 574.01(-1.09)
VLSFO – USD/MT – 731.56 (-3.07)
MGO – USD/MT – 869.45 (+6.70)
Prices for LNG as bunker fuel remain at high levels in Europe. Warmer weather and an increase in renewable energy production contribute to some decrease in gas indices, but the trend may change again depending on weather forecasts closer to March. The price for LNG as a bunker fuel at the port of Risavika (Norway) on February 09 was 1503 USD/MT versus 855 USD/MT – the price of MGO LS grade at the port of Bergen.
The correlation of MABUX MBP Index (Market bunker price) vs MABUX DBP Index (MABUX digital bunker price benchmark) on February 10 showed that 380 HSFO fuel grade remained overpriced in two out of four ports selected: Singapore – minus $22 (unchanged from the day before ) and Fujairah – minus $4 (minus $1). In Rotterdam and Houston, the MABUX MBP/DBP Index registered an overcharge of 380 HSFO by plus $8 (no change) and plus $27 (no change), respectively. The difference in MBP/DBP Index values remains stable.
VLSFO, according to the MABUX MBP/DBP Index, was overvalued on February 10 in all selected ports. VLSFO overprice margins were registered as: in Rotterdam – plus $ 33 (plus $ 35 the day before), in Singapore – plus $ 38 (no change), in Fujairah – plus $ 44 (plus $ 49) and in Houston – plus $ 18 (no change). The MBP/DBP Index ratio remained stable in all ports.
As per MGO LS, the MABUX MBP/DBP Index registered underpricing of this fuel grade on February 10 in three of the four selected ports: in Rotterdam – minus $ 28 (minus $ 13 a day earlier), in Singapore – minus $ 30 (minus $ 24) and in Fujairah – minus $31 (minus $17). The only port where MGO LS is still overpriced is Houston – plus $32 versus plus $36 the day before. The most significant change was the growth of MGO LS’s underestimation ratio at the ports of Rotterdam and Fujairah by 15 and 14 points, respectively.
We expect global bunker prices to change sideways today: 380 HSFO – plus-minus 1-3 USD, VLSFO – plus-minus 1-3 USD, MGO LS – 0-minus 9 USD.