MABUX: Global bunker prices may decline sharply on Jul.20 following downward trend on global crude market

July 20, 2021

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued slight downward trend on Jul.19:

380 HSFO – USD/MT – 447.98 (-2.29)
VLSFO – USD/MT – 556.31 (-3.00)
MGO – USD/MT – 648.98 (-1.04)

The MABUX ARA LNG Bunker Index– the average price of LNG as a marine fuel in the ARA region, continued downward trend on July 19: 766.91 USD/MT (-2.34 USD). The LNG Bunker Index exceeds the cost of MGO LS at the port of Rotterdam by 194.91 USD (572 USD/MT as of July 19), the difference in price compared to the day before increased by $ 13.50. LNG Bunker indices are available at www.mabux.com.

As of July 19, a correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (Digital Bunker Prices Benchmark) in four largest global hubs showed that 380 HSFO fuel remained undervalued in all selected ports: from minus $ 17 in Houston (unchanged from the day before) to minus $ 45 (minus $ 30) in Rotterdam and minus $ 53 (minus $ 48) in Singapore. The most significant change in 380 HSFO’s MBP/DBP Index was recorded in Rotterdam (undervaluation ratio up by $ 15).

VLSFO, according to the MABUX DBP Index, was also underestimated in all selected ports on 19 July. The underestimation ranged from minus $ 13 in Houston (minus $ 21 the day before) and minus $ 28 (minus $ 5) in Rotterdam to minus $ 37 (minus $ 35) in Fujairah and minus $ 38 (minus $ 40) in Singapore. The VLSFO’s underestimation ratio dropped in Houston by $ 8 and a sharply increased in Rotterdam (by $ 23).

On July 19, MABUX DBP Index also registered the underpricing of MGO LS in all selected ports ranging from minus $ 20 (minus $ 17 a day earlier) in Houston to minus $ 62 (minus $ 50) in Rotterdam, minus $ 74 (unchanged) in Singapore and minus $ 61 (minus $ 64) in Fujairah. In Rotterdam, the MBP / DBP Index rose by $ 12 – the most significant change.