- Scrubber Spread Nears $100 Breakeven Mark.
- European Gas Prices Hit Two-Year High Amid Increased Power Generation.
- LNG Bunker Prices Surge in Sines, Widening Price Gap With MGO.
In Week 07, the 380 HSFO, VLSFO, and MGO indexes rose moderately, with MGO topping the 800 USD mark. A small decline correction period is underway, reports LinkedIn.
World Scrubber Spread Widens
The MABUX Global Scrubber Spread extended by a fraction to $90.93, approaching the breakeven mark of $100. Rotterdam and Singapore regional spreads tightened further and diminished scrubber profitability.
EU Gas Prices Picking Up
Higher gas-fired power production in Northern Europe has pushed gas prices to their highest since the beginning of 2023. European gas storage stood at 47.89% full as of February 11, with the withdrawal process still in progress.
LNG Prices Soar in Sines Port
Sines LNG bunker prices increased by $99 to $1,090/MT. The price difference between LNG and MGO LS increased to $317, reflecting LNG’s premium over traditional fuels.
MABUX Market Differential Index (MDI) Trends
- 380 HSFO: Singapore continued to be overvalued, whereas Rotterdam, Fujairah, and Houston continued to be undervalued.
- VLSFO: Fujairah and Singapore were overpaid, whereas Rotterdam and Houston were undervalued.
- MGO LS: All ports remained undervalued, with varying weekly changes in major ports.
Environmental Challenges in Maritime Activities
Shipping is estimated to have contributed 3-4% of EU CO2 emissions as per an EMSA and EEA report. Methane emission has increased from the use of LNG. Emissions of sulphur have fallen since the coming into force of SECA regulations, while in the period between 2015 and 2023, 10% was added to emissions of nitrogen oxide.
Trade tensions’ effect on global bunker indices
Increasing North America/Western Europe/China trade tensions are likely to maintain global bunker index growth momentum in the coming week.
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Source: LinkedIn
