Global Bunker Market Goes ‘Nowhere But Up’

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MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into an upward deviation on Sep. 19:

380 HSFO – USD/MT – 521.01 (+8.68)

VLSFO – USD/MT – 782.95 (+3.07)

MGO – USD/MT – 1 102.13 (+12.15)

Undervalued fuel grade

380 HSFO fuel grade, according to MDI (comparison MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark)), were undervalued on Sep. 19 in all selected ports.

The underestimation premium was registered as: 

Rotterdam – minus $102 (minus $113 the day before)

Singapore – minus $149 (minus $152 the day before)

Fujairah – minus $146 (minus $153 the day before)

Houston – by minus $42 (minus $59 the day before)

MDI increased in all selected ports. The most significant changes were registered in Houston, where the undercharge level declined by 17 points.

In the VLSFO fuel grade segment, all four selected ports, according to the MDI index, were in the overcharge zone: 

Rotterdam – plus $13 (plus $7 the day before)

Singapore – plus $36 (plus $41 the day before) 

Fujairah – plus $44 (plus $41 the day before) 

Houston plus $26 (plus $20 the day before)

As per MDI, an upward trend was registered in the VLSFO segment: the overcharge premium increased in most of the selected ports. The most significant changes were registered in Rotterdam and Houston – the overcharge level in both ports increased by 6 points.

MGO LS was undercharged in two out of four selected ports: 

Rotterdam – by minus $26 (minus $6 the day before)

Singapore – by minus $104 (minus $77 the day before) 

This fuel grade remained overcharged in Fujairah – by plus $212 (plus $237 the day before) and in Houston – by plus $48 (plus $24 the day before). MDI index in the MGO LS segment declined for all selected ports. The most significant changes were registered in Singapore, where the undercharged level increased by 27 points.

We expect Global bunker prices may continue upward changes on Sep.20: 

the price for 380 HSFO may increase by 1-3 USD/MT, 

VLSFO – by plus 3-5 USD/MT, 

MGO LS – may rise by 10-15 USD/MT.

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Source: Mabux.com

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