MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into downward movement on Oct.07:
380 HSFO – USD/MT – 520.19 (-2.31)
VLSFO – USD/MT – 606.69 (-7.48)
MGO – USD/MT – 725.83 (-11.15)
MABUX temporarily suspends publication of the MABUX ARA LNG Bunker Index as the LNG bunkering market has practically stalled due to falling demand caused by a sharp increase in gas prices in Europe. We believe the gas crisis is temporary and expect LNG bunkering operations to resume by the end of this year. The publication of the MABUX ARA LNG Bunker Index will resume as soon as the LNG bunker market recovers.
As of October 7, 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 was overvalued in three out of four ports: in Rotterdam – plus $ 21 (plus $ 10 the day before), in Singapore – plus $ 42 (plus $ 45) and in Fujairah – plus $ 27 (plus $ 25). In Houston, the MABUX MBP / DBP Index registered an underestimation of HSFO 380 by minus $ 10 (minus $ 21). The most significant changes in the MABUX MBP / DBP Index were recorded in Rotterdam (overcharge rose by $ 11) and in Houston (undercharge decreased by $ 11).
VLSFO, according to the MABUX MBP / DBP Index, was undervalued on October 7 in all selected ports, except for Houston, where the Index recorded an overpricing by $ 8 (plus $ 1 a day earlier). The underestimation margins were: in Rotterdam – minus $ 4 (minus $ 5 the day before), in Singapore – minus $ 19 (unchanged), in Fujairah – minus $ 19 (minus $ 25). Overall, the MABUX MBP / DBP Index for VLSFO fuel grade did not change significantly.
MGO LS, according to the MABUX MBP / DBP Index, remained underestimated on October 7 in all selected ports: in Rotterdam – minus $ 39 (minus $ 48 compared to the day before), minus $ 40 (minus $ 35) in Singapore, minus $ 56 (minus $ 70) in Fujairah and minus $ 2 (minus $ 14) in Houston. The most significant change in the MABUX MBP / DBP Index was recorded in Fujairah: a $ 14 reduction of undervaluation, and in Houston (a $ 12 reduction of undervaluation).
We expect global bunker prices to turn into slight upward correction today: 380 HSFO – plus 3-5 USD/MT, VLSFO – plus 4-6 USD/MT, MGO LS – plus 2-5 USD/MT.
Source: www.mabux.com