Global Bunker Indices Witness Moderate Growth
During Week 51, the MABUX global bunker indices showed moderate increases.
- 380 HSFO rose by USD 5.22, climbing from USD 512.10/MT to USD 517.32/MT, staying above the USD 500 mark.
- VLSFO gained USD 3.80, reaching USD 591.05/MT, edging closer to the USD 600 threshold.
- MGO increased by USD 4.92, rising from USD 747.94/MT to USD 752.86/MT.
The global bunker market continues its upward trajectory.
Scrubber Spread Dynamics
The Global Scrubber Spread (SS), which measures the price difference between 380 HSFO and VLSFO, decreased slightly by USD 1.42, settling at USD 73.73 (down from USD 75.15 last week), still below the USD 100 breakeven.
Regional Scrubber Spread Trends:
- Rotterdam: Increased by USD 1.00, from USD 60.00 to USD 61.00, with a weekly average gain of USD 11.33.
- Singapore: Rose by USD 6.00, climbing from USD 84.00 to USD 90.00, approaching the USD 100 mark, though the weekly average declined by USD 5.33.
The Global SS Spread and regional indices displayed no clear trend, and fluctuations are expected to continue.
Natural Gas and LNG Market Update
Despite a slight easing in natural gas prices, an upward trend is anticipated in early 2024 due to seasonal demand in the northern hemisphere. Europe remains the primary driver of natural gas consumption, with coal leading energy sources in Germany, followed by natural gas and wind.
As of December 16, European regional storage facilities were 77.49% full, a 4.05% decrease compared to the previous week, as withdrawals continue. By the end of Week 51, the European gas benchmark, TTF, fell by 3.487 euros/MWh, settling at 42.065 euros/MWh (down from 45.552 euros/MWh the previous week).
The price of LNG as a bunker fuel at the port of Sines, Portugal, dropped by USD 102, reaching USD 863/MT on December 16. The price gap between LNG and conventional fuel narrowed significantly, with MGO LS priced at USD 731/MT, resulting in a difference of USD 132, compared to USD 248 the previous week.
MABUX Market Differential Index (MDI)
During Week 51, the MABUX Market Differential Index (MDI), which compares market bunker prices (MBP) with the MABUX digital bunker benchmark (DBP), remained undervalued for all bunker fuel types in major hubs, including Rotterdam, Singapore, Fujairah, and Houston.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: LinkedIn India
