MABUX Reports Mixed Movements and LNG Price Increase

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Mfame Editor
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The MABUX Global bunker indices, at the end of the 12th week, displayed a lack of consistent direction, with fluctuations observed across different fuel types, reports MABUX on LinkedIn.

Global Scrubber Spread Increase

The MABUX Global Scrubber Spread (SS) saw a slight increase, rising by $1.49 to $80.56, but remains below the $100 breakeven point. The weekly average of the spread, however, decreased by $1.31.

In Rotterdam, the SS Spread decreased by $9.00 to $54.00, with the weekly average also falling. In Singapore, the spread increased by $10.00 to $45.00, with the weekly average also rising.

Overall, the SS Spread dynamics continue to favor VLSFO over 380 HSFO with scrubbers. Europe experienced a shift from warm to freezing temperatures, increasing gas withdrawals from storage and driving up gas prices.

The end of Russian pipeline gas supplies through Ukraine and warnings from the IEA about tighter LNG market conditions in 2025 are contributing factors.

Europe’s need to replenish gas stocks from low levels is expected to increase demand in global LNG markets.

European gas prices have outperformed Asian markets, but the need to refill gas storage has pushed summer 2025 TTF futures prices above winter 2026 prices, slowing storage refilling.

Bunker Fuel Market

The bunker fuel market data can be seen as follows:

  • LNG Bunkering:
    • The price of LNG bunker fuel in Sines, Portugal, increased by $34 to $837/MT on March 17.
    • The price difference between LNG and MGO LS widened to $121 in favor of MGO LS.
    • MGO LS was priced at $716/MT in Sines on March 17.
  • MABUX Market Differential Index (MDI):
    • The MDI showed mixed movements across Rotterdam, Singapore, Fujairah, and Houston.
    • 380 HSFO Segment:
      • Rotterdam and Singapore were overvalued, with decreasing MDI.
      • Fujairah and Houston were undervalued, and their undervaluation was increasing.
      • Rotterdam reached a 100% correlation between MBP and DBP.
    • VLSFO Segment:
      • Rotterdam was the only overvalued port, with decreasing MDI.
      • Singapore, Fujairah, and Houston were undervalued.
      • Singapore and Houston displayed a decrease in undervaluation, while Fujairah displayed an increase.
      • Rotterdam came close to a 100% correlation between MBP and DBP.

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Source: MABUX on LinkedIn