At the end of Week 31, global MABUX bunker indices moved in different directions. The 380 HSFO index rose by $7.71 to $472.92/MT, while the VLSFO index increased by $6.70 to $561.88/MT. However, the MGO index saw a slight decrease of $0.31, settling at $791.77/MT. These trends suggest a potential resumption of an upward movement in the global bunker market.
Scrubber Spread Declines, But Singapore Sees an Increase
The MABUX Global Scrubber Spread (SS), which is the price difference between 380 HSFO and VLSFO, continued to fall, dropping by $1.01 to $88.96. This figure remains below the $100 breakeven point, indicating that using conventional VLSFO is currently more profitable than using HSFO with scrubber technology. In Rotterdam, the SS Spread also decreased by $1.00 to $66.00. In contrast, Singapore’s price difference increased by $3.00 to $102.00, once again exceeding the $100 threshold.
Natural Gas Demand and European Storage
The International Energy Agency (IEA) projects that global natural gas demand growth will slow in 2025 before rebounding in 2026. This rebound is expected to be driven by new LNG supplies from the U.S., Canada, and Qatar. Meanwhile, as of July 29, European gas storage facilities were 67.63% full, an increase of 2.21% from the previous week, as the region prepares for the upcoming heating season. The European gas benchmark TTF also saw a price increase of 0.992 euros/MWh.
MABUX Market Differential Index (MDI) Trends
The MABUX Market Differential Index (MDI) reflected varied trends in bunker prices across major hubs.
- 380 HSFO Segment: All ports (Rotterdam, Singapore, Fujairah, and Houston) remained undervalued. Rotterdam and Houston saw a decline in MDI values, while Singapore and Fujairah experienced an increase.
- VLSFO Segment: Rotterdam was the only port to be overvalued, though its MDI slightly dropped. The other three ports—Singapore, Fujairah, and Houston—were undervalued.
- MGO LS Segment: Rotterdam was again the sole overvalued port, with its MDI increasing. The other three ports remained undervalued, with slight MDI increases in Singapore and Houston, and a decrease in Fujairah.
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Source: MABUX On LinkedIn