- Bunker fuel prices in the world’s four primary hubs – Rotterdam, Singapore, Fujairah, and Houston – experienced a continued decline in the week ending August 4th.
- The average price of 380 HSFO, VLSFO, and MGO witnessed a decrease, with some fuel grades nearing significant price thresholds.
The MABUX Global Bunker Index, which tracks bunker prices in these key locations, recorded a notable drop. The 380 HSFO index fell by $9.30 to $531.05 per metric ton, edging closer to the $500 mark. VLSFO prices also declined, dropping by $10.88 to $630.92 per metric ton. Meanwhile, the MGO index decreased by $13.61 to $810.08 per metric ton, approaching the $800 level.
Scrubber Spread Analysis
The Scrubber Spread (SS), the price difference between high-sulfur fuel oil (HSFO) and very low-sulfur fuel oil (VLSFO), experienced a moderate decrease. While the global average SS fell by $1.58 to $99.87, there were variations across different ports. Rotterdam witnessed a widening of the SS by $10 to $74, while Singapore saw an increase of $4 to $111.
LNG as Bunker Fuel
The price of LNG as a bunker fuel in Sines, Portugal, continued its upward trend, increasing by $13 to $754 per metric ton. However, the price differential between LNG and conventional marine gas oil (MGO) narrowed to $46, indicating potential increased competitiveness for LNG as a bunker fuel.
Market Outlook
While bunker prices have declined in recent weeks, the report cautions that this trend may be temporary. Factors such as fluctuations in crude oil prices, refining margins, and global economic conditions could influence future price movements.
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Source: Port News
