Global bunker prices continued their moderate decline in the 9th week of the year. However, a slight upward correction was noted in the market at the time of this report, reports MABUX on LinkedIn.
Scrubber Spread Falls
The MABUX Global Scrubber Spread (SS), the price difference between high-sulfur fuel oil (HSFO) and very low-sulfur fuel oil (VLSFO), slightly decreased to $91.65, remaining below the $100 breakeven point. Regionally, Rotterdam saw an increase in the SS Spread, while Singapore experienced a further decline. Overall, the Global SS Spread remained relatively stable, continuing to favor the use of HSFO over the VLSFO+Scrubber combination due to cost advantages.
European natural gas futures are fluctuating around €49/MWh as traders consider the need to refill storage before next winter. Proposals to ease EU storage requirements are being discussed. Current regulations mandate 90% storage capacity by November, with interim targets throughout the year. As of February 25th, European storage was at 40.30% capacity, a decrease from the previous week and a substantial drop since the start of the year. Gas withdrawal from storage continues. The TTF benchmark price also decreased, remaining below €50/MWh.
LNG Bunker Price
LNG bunker fuel prices in Sines, Portugal, fell significantly by $54 to $949/MT by the end of the week, dipping below $1000. The price difference between LNG and conventional fuel narrowed, with MGO LS being $177 cheaper than LNG compared to $227 cheaper the previous week. MGO LS was priced at $772/MT in Sines.
The MABUX Market Differential Index (MDI) showed continued fluctuations across major global hubs:
- 380 HSFO: Singapore was the only overvalued port, with a slight decrease in its overvaluation. Fujairah and Houston remained undervalued, with Fujairah’s underpricing increasing and Houston’s decreasing. Rotterdam showed perfect correlation between market and digital benchmark prices.
- VLSFO: Singapore shifted to undervalued territory, joining Fujairah and Houston. Singapore and Fujairah saw increased undervaluation, while Houston’s undervaluation decreased. Rotterdam remained overvalued.
- MGO LS: All four ports were undervalued. Rotterdam’s undervaluation decreased, approaching perfect correlation. Singapore’s and Fujairah’s undervaluation increased slightly, and Houston’s remained unchanged. Fujairah maintained a comfortable level of undervaluation.
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Source: MABUX On LinkedIn
