According to a report from MABUX on LinkedIn, global bunker indices experienced a general decline during Week 42, with a potential upward correction on the horizon. The 380 HSFO index fell by USD 7.63, from USD 536.99/MT to USD 529.36/MT. VLSFO saw a decrease of USD 15.69, settling at USD 607.98/MT from USD 623.67/MT. Similarly, the MGO index declined by USD 21.58, reaching USD 764.43/MT compared to USD 786.01/MT last week. Despite these declines, a moderate upward correction was observed in the global bunker market as of the time of writing.
Scrubber Spread Dynamics
The Global Scrubber Spread (SS), representing the price difference between 380 HSFO and VLSFO, continued its decline by USD 8.06, dropping to USD 78.62, remaining under the $100 breakeven point. However, Rotterdam saw an increase of USD 29.00 in SS Spread, while Singapore’s spread widened by USD 16.00. Volatility remains, with no clear trend expected in the coming week.
IEA’s Revised Outlook on Natural Gas Demand
The International Energy Agency (IEA) adjusted its forecast, projecting faster-than-expected growth in natural gas demand, which may create supply pressures due to slower production increases. European regional storage facilities were 95.02% full, and the European TTF gas benchmark rose by EUR 1.054/MWh in Week 42, indicating potential challenges ahead.
LNG Bunkering in Sines
The price of LNG as a bunker fuel in Sines, Portugal, increased by USD 4, reaching USD 877/MT. The price gap between LNG and conventional fuel narrowed slightly, with MGO LS priced at USD 754/MT. More details are available in the LNG Bunkering section of mabux.com.
MDI Index Trends Across Global Hubs
The Market Digital Indicator (MDI) revealed trends in bunker price valuation across Rotterdam, Singapore, Fujairah, and Houston:
- 380 HSFO: Rotterdam remained overvalued, while other ports showed undervaluation.
- VLSFO: Singapore and Fujairah stayed overvalued, while Rotterdam and Houston were undervalued.
- MGO LS: All four ports were undervalued, with fluctuations in their weekly averages.
Undervaluation continued to dominate the global market for all bunker fuel types.
Fuel Quality Insights from VeriFuel
VeriFuel’s Q3 2024 report highlighted fluctuations in VLSFO viscosity and cat fines content in HSFO. Viscosity levels for VLSFO have steadily risen, reaching an average of 165 cSt in Q3 2024. Istanbul experienced an increase in off-spec VLSFO, while cat fines concentration shifted in various regions, including Istanbul and Zhoushan. Off-spec HSFO cases were recorded in Cuxhaven, Hong Kong, and Houston in Q3.
Outlook for the Bunker Market
The global bunker market may have reached its downward limit, and a moderate upward correction is anticipated next week. For detailed insights, visit the “Digital Bunker Prices” section at mabux.com.
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Source: LinkedIn India
