- Scrubber Spread Holds Below $100 as VLSFO Remains More Profitable.
- IEA Projects LNG Demand Growth With Major Supply Boost in 2026.
- European Gas Storage Rises to 76% as TTF Benchmark Climbs.
As we wrap up the 35th week, the MABUX bunker indices have shown a bit of a bounce back. The 380 HSFO index climbed by $8.97, hitting $461.40/MT and breaking through the $460 barrier. Meanwhile, VLSFO saw a gain of $10.63, reaching $548.93/MT and inching closer to the $550 mark. The MGO index also made strides, rising by $12.68 to $764.18/MT, crossing the $760 threshold. Overall, the global bunker market hasn’t displayed any significant movement, reports LinkedIn.
Scrubber Spread Developments
The MABUX Global Scrubber Spread (SS), which measures the price difference between 380 HSFO and VLSFO, crept up slightly by $1.66 to $87.53, still shy of the $100 breakeven point. In Rotterdam, the spread jumped by $6.00 to $66.00, while Singapore experienced a slight dip of $1.00 to $90.00. Despite these fluctuations, SS spreads are holding steady, with VLSFO continuing to offer better profitability over HSFO for those using scrubbers.
LNG Demand Outlook
The International Energy Agency is predicting a steady rise in global gas demand, with LNG demand expected to pick up speed starting in 2026. Supply is projected to grow by 7% (40 bcm) that year, the biggest increase since 2019, thanks to new projects in the US, Canada, and Qatar, which will bolster demand in Asia.
European Gas and LNG Bunker Prices
As of August 26, European gas storage was at 76.24% capacity, up 2.03% from the previous week and nearly 5% higher than at the beginning of the year. The TTF benchmark increased by 2.413 EUR/MWh, reaching 33.460 EUR/MWh. LNG bunker fuel at Sines rose by $14.00 to $755/MT, narrowing its gap with conventional fuels to just $9. On the same day, MGO LS in Sines was priced at $746/MT.
MABUX Market Differential Index
The MDI continues to reflect underpricing across all major hubs, Rotterdam, Singapore, Fujairah, and Houston. In the 380 HSFO segment, underpricing widened in Rotterdam, Singapore, and Fujairah, but narrowed in Houston.
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Source: LinkedIn
