- Global bunker prices surged during the past week, reversing a four-week downward trend.
- All major fuel grades experienced price increases, with the 380 HSFO index reclaiming the $500/MT mark.
- Despite these fluctuations, the market remains dynamic, with underpricing observed in several key ports.
The global bunker market experienced a reversal of fortune during Week 33, with all fuel grades witnessing a moderate uptick in prices. The 380 HSFO index reclaimed the $500/MT mark, while VLSFO and MGO indices also registered substantial increases.
Scrubber Spread Widens
The MABUX Global Scrubber Spread (SS) – the price difference between 380 HSFO and VLSFO – witnessed a notable increase, surpassing the $100.00 SS Breakeven mark. This upward trajectory was observed both globally and in key ports like Rotterdam and Singapore.
Gas Prices Surge
The European gas market experienced volatility due to supply concerns and increased LNG demand in Asia. This led to a surge in European gas prices and a widening price differential between LNG and conventional bunker fuels.
Market Analysis and Outlook
The MDI index indicated underpricing for all fuel types across major hubs, suggesting potential for further price increases. While the market witnessed a shift towards underpricing, the overall trend points to a continuation of the upward momentum in bunker prices.
Gibson Shipbrokers highlighted the growing popularity of scrubbers, particularly among VLCCs, due to their long-haul operations and high fuel consumption.
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Source: LinkedIn
