At the close of the 36th week, global bunker indices maintained a moderate upward trend. The MABUX 380 HSFO, VLSFO, and MGO indices all increased, with the VLSFO index surpassing the $550 mark. However, the overall market direction remained unclear.
Energy Market Projections
An outlook from ExxonMobil forecasts a significant increase in global natural gas demand, projecting a rise of more than 20% by 2050. This growth is expected to be driven by a shift away from coal in industrial sectors and higher power usage in emerging markets. The company believes oil demand will plateau after 2030 but remain above 100 million barrels per day through 2050, with oil and gas together accounting for about 55% of the global energy mix. Exxon positions natural gas as a critical transition fuel.
European Gas Storage and LNG
As of September 2, European gas storage facilities were 78.08% full, an increase of 1.84% from the prior week. Despite the slowdown in injections, this level is 6.75% higher than at the beginning of the year. Meanwhile, the European gas benchmark TTF fell to 31.772 euros/MWh. The price of LNG as a bunker fuel in the port of Sines rose to $762/MT, widening its price gap with conventional fuels.
MABUX Market Differential Index (MDI)
The MABUX MDI continued to show that all bunker fuel types—380 HSFO, VLSFO, and MGO LS—were undervalued in major hubs like Rotterdam, Singapore, Fujairah, and Houston. The degree of undervaluation varied by fuel type and location, with the MGO LS segment in Fujairah remaining above the $100 threshold
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Source: MABUX on LinkedIn
