MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into upward correction on Aug.23 after 5 consecutive days of decline:
380 HSFO – USD/MT – 429.74 (+1.57)
VLSFO – USD/MT – 521.33 (+1.14)
MGO – USD/MT – 617.24 (+1.50)
The MABUX ARA LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, rose slightly on August 24: 978.22 USD/MT (plus 3.92 USD). The LNG Bunker Index exceeds the cost of MGO LS in the port of Rotterdam by USD 445.22 (USD 533/MT as of August 23), the difference in price compared to the day before decreased by USD 4.08. LNG bunker indices are available at www.mabux.com.
As of August 23, 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, except Fujairah, where the overpricing of this fuel grade was plus $ 14 (plus $ 15 a day earlier). The underestimation margins for the rest of the ports were: minus $ 2 in Houston (minus $ 9), minus $ 24 (minus $ 36) in Rotterdam and minus $ 19 (minus $ 32) in Singapore. In all three ports, the underestimation ratio has dropped significantly, and in Houston it is very close to zero point.
VLSFO, according to the MABUX MBP/DBP Index, was undervalued in all selected ports on August 23, apart from Houston, where an overcharge of plus $ 7 was recorded (minus $ 1 a day earlier). The VLSFO’s underestimation level in other ports was minus $ 15 (minus $ 25) in Fujairah, minus $ 28 (minus $ 34) in Singapore and minus $ 10 (minus $ 32) in Rotterdam. The most significant change of the MABUX MBP/DBP Index was registered in Rotterdam ($ 18 down).
The MABUX MBP/DBP Index registered the underpricing of MGO LS in all selected ports on August 23, except for Houston, where the MABUX MBP/DBP Index showed an overpricing of plus $ 3 (minus $ 1 the day before). In other ports, the MGO LS margin was: in Rotterdam – minus $ 55 (minus $ 60), minus $ 76 (minus $ 78) in Singapore and minus $ 43 (minus $ 38) in Fujairah. Thus, as of August 23, Houston became the only port where all types of fuel, according to the MABUX MBP/DBP Index, were overpriced (for the first time since March 24).
We expect global bunker prices will rise today firmly after crude yesterday’s rebound: 380 HSFO – plus 12-17 USD/MT, VLSFO – plus 18-23 USD/MT, MGO LS – plus 15-25 USD/MT.
Source: www.mabux.com