- European Gas Storage Levels Drop Amid Cold Weather.
- LNG Bunker Fuel Prices Fall in Sines, Portugal.
- Market Differential Index Reveals Mixed Trends Across Ports.
In Week 08, MABUX global bunker indices registered a minor decline. The 380 HSFO declined by $5.60 to $522.46 per metric ton (MT), while VLSFO declined by $3.43 to $615.46 per MT. MGO declined by $4.70 to $803.55 per MT, closing in on the $800 threshold. There were no apparent sustainable trends across the global bunker market, reports LinkedIn.
Global Scrubber Spread (SS) Trends
The Global Scrubber Spread (SS)—the differential price between 380 HSFO and VLSFO—gained moderately by $2.17 to $93.00, within reach of the $100.00 breakeven point. At $73.00, Rotterdam’s SS Spread dropped by $2.00, and Singapore’s rose by $8.00 to $70.00. No major variations were observed for the overall Global SS Spread, though minor regional movements are expected to persist.
LNG Market Overview
International LNG imports hit a 12-month peak of 38.12 million tonnes in January, led by Europe’s redirection of LNG cargoes from Australia and Oman. European natural gas futures fell modestly, but upward pressure persists due to colder temperatures, low wind speeds cutting wind power output, and the end of Russian gas imports. European gas storage decreased to 43.37%, down from last year’s 67% and a 10-year average of 51%. The TTF gas benchmark declined to 49.915 euros per megawatt-hour (MWh) from 57.766 euros per MWh the week before.
LNG Bunker Fuel Price Trends
The Sines, Portugal, LNG price decreased by $87 to $1,003/MT on Feb 17. The difference in prices between LNG and Marine Gas Oil Low Sulfur (MGO LS) decreased, with MGO LS being $227 cheaper than LNG, down from $317 in the previous week.
MABUX Market Differential Index (MDI) Analysis
Singapore was still the sole overvalued port for 380 HSFO, while Rotterdam, Fujairah, and Houston were undervalued. For the VLSFO market, Rotterdam and Singapore were still overvalued, with Fujairah and Houston being undervalued. All ports were undervalued for MGO LS, with week-on-week rises across all key hubs. The undervaluation trend continued in all segments, with no noteworthy changes anticipated next week.
Singapore Bunker Fuel Sales Decline
Singapore bunker fuel sales declined by 9.1% to 4,461,710 MT in January from the preceding month. VLSFO sales declined 15% year-on-year to 2,431,300 MT, and HSFO fell slightly to 1,655,300 MT. MGO LS sales decreased by 19.1% to 256,500 MT, while MGO sales dropped by 77%.
Alternative fuel sales also registered strong growth, with bio-VLSFO sales increasing to 92,000 tonnes, double the previous amount, while bio-HSFO sales also hit 16,000 tonnes. SECA-contravening ultra-low-sulfur fuel oil (ULSFO) sales picked up for the first time since October 2024. Nevertheless, LNG sales reached a record low of 10,400 tonnes in January 2025, while methanol sales did not register any sales.
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Source: LinkedIn
