Viswa Lab’s ‘True Worth Index (TWI)’ for Bunker Fuels – January 2016

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Viswa Lab has recently released True worth Index of Bunker fuels for the month of JANUARY 2016.

The best fuel in THE MIDDLE EAST has a TWI of 66 and the worst fuel in SINGAPORE has a TWI of 51.  If the fuel cost in SINGAPORE is $ 176.50/MT, it should sell in THE MIDDLE EAST for $ 205.00 – 215.00/ MT (by applying a price spread of 19.02 %) not taking in account any other logistics cost.

Proportions EFN* ECN** CV TWI
Region 0.4 0.4 0.2  
Japan/Korea 62 22 40.20 62
Middle East 65 25 40.46 66
ARA – high 65 12 40.68 58
ARA – low 50 21 40.44 55
Singapore – high 56 23 40.16 59
Singapore – low 50 14 40.32 51
U.S. Gulf – high 63 21 40.92 63
U.S. Gulf – low 62 17 40.40 60
Durban 59 14 40.34 56
U.S. Northwest 61 17 39.2 59
U.S. Southeast 57 16 37.3 56

EFN – Engine Friendliness Number

ECN – Estimated Cetane Number

CV – Calorific Value

Region TWI Bunker Price/ MT – 2nd Feb 2016 – IFO 380 cSt
Middle East – Fujairah 66 162 $
Singapore 52 167 $

The latest True Worth Index (TWI) values from Viswa Lab suggest that the difference between the best and worst regional fuels it tested in January 2016 should equate to a price difference of $33.5 between the top scoring fuels and the lowest scoring products.

Viswa Lab said to MFAME that if the fuel cost Singapore was $176.50 per metric tonne, “it should sell in the Middle East” for $205 to $215 per metric tonne not taking in account any other logistics cost.”

* EFN can jump from very high values to very low values.  Both these extremities are unusual and occasional and should be considered as outliers in a statistical analysis.  Therefore considering a mean of EFN (calculated by us over 1000 of sample of 58) we have determined that any value below 50 will be treated as 50 and any value above 65 will be treated as 65.

** On a similar basis, the ECN values below 10 will be treated as 10 and above 25 will be treated as 25.  This is based on the average ECN of 18 over 100’s of samples.

For latest bunker prices – please visit MFAME Bunker Fuel Prices

Source: Viswa Lab

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