Global Bunker Indices Continue Downward Trend

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  • All four ports remained undercharged, with underprice ratio narrowing in each port.
  • MDI Index in Singapore remained above the $100 mark.
  • Rotterdam and Fujairah: Undercharge zone, with premiums narrowing by $2.

On December 28, the MABUX World Bunker Index, calculated from prevailing prices for 380 HSFO, VLSFO, and MGO, experienced a downward correction.

380 HSFO – USD/MT – 519.17 (-4.52)
VLSFO – USD/MT – 652.64 (-3.05)
MGO – USD/MT – 893.44 (-6.19)

HSFO Overpriced

As of Dec.28, the MABUX MBP/DBP Index (MDI), tracking the correlation between market bunker prices (MBP) and the MABUX digital bunker price benchmark (DBP), observed the following trends across four selected ports: Rotterdam, Singapore, Fujairah, and Houston.

– HSFO segment: Houston continued to be in the overcharge zone, with the overprice premium narrowing further by $4 and approaching to the 100-percent correlation mark between market price and the digital benchmark. The other three selected ports were in the undercharge zone, with underpricing premiums narrowing by $2 in Rotterdam and $2 in Fujairah. In Singapore MDI index remained unchanged.

VLSFO Overpriced

– VLSFO segment: Rotterdam and Houston experienced underpricing, with premiums decreasing by $6 in Rotterdam and increasing by $1 in Houston. Singapore and Fujairah were overcharged, with overpricing margins rising by $11 in Singapore and $11 in Fujairah.

MGO LS Overpriced

– MGO LS segment: All four selected ports remained undercharged. The underprice ratio narrowed by $6 in Rotterdam, $9 in Singapore, $7 in Fujairah, and $2 in Houston. MDI Index in Singapore remained above the $100 mark.

We expect Global bunker indices to continue a downward trend on Dec. 29: 380 HSFO – minus 3-9 USD/MT, VLSFO – minus 5-12 USD/MT, MGO LS – minus 5-15 USD/MT.

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Source: MABUX

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