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On October 24, the MABUX World Bunker Index, which is based on the current prices of 380 HSFO, VLSFO, and MGO, exhibited a consistent downward trend.
380 HSFO – USD/MT – 569.63 (-5.61)
VLSFO – USD/MT – 679.36 (-8.95)
MGO – USD/MT – 995.73 (-9.27)
HSFO Undervaluation
As of Oct. 24, the MABUX MBP/DBP Index (MDI) (the correlation between market bunker prices (MBP) and the MABUX digital bunker price benchmark (DBP)), registered the undervalue in all fuel segments across the four selected ports: Rotterdam, Singapore, Fujairah, and Houston.
– HSFO segment: The undercharge premium slightly narrowed by $1 in Rotterdam and $4, but widened by $1 in Fujairah. MDI index in Houston remained unchanged.
VLSFO Undervaluation
– VLSFO segment: Undervalue margins decreased in all four selected ports: by $8 in Rotterdam, $6 in Singapore, $13 in Fujairah and $13 in Houston. Fujairah stays close to 100-percent correlation mark between market price and digital benchmark.
MGO LS Undervaluation
– MGO LS segment: The undercharge premium rose by $4 in Rotterdam and $3 in Singapore, but dropped by $1 in Fujairah and $4 in Houston.
We expect a sustainable downward trend to prevail in the Global bunker market on Oct. 25: 380 HSFO – minus 3-8 USD/MT, VLSFO – minus 4-9 USD/MT, MGO LS – minus 10-18 USD/MT.
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Source: MABUX
