Over Week 26, the world bunker indices did not have a firm trend and showed moderate irregular changes, according to Sergey Ivanov, director of Marine Bunker Exchange (MABUX).
The 380 HSFO index rose marginally to US$735.72/mt, the VLSFO index increased to US$1,069.86/mt, while the MGO index dropped to US$1,380.95/mt.
The Global Scrubber Spread (SS) weekly average – the price difference between 380 HSFO and VLSFO – continued its slight upward trend over the week – plus US$5.41 (versus US$328.78 last week).
In Rotterdam, the average SS Spread rose more significantly: US$307 (up US$16.67 from last week). In Singapore, the average weekly price difference of 380 HSFO/VLSFO also rose by US$16.33, (vs. US$473.50 last week).
“European benchmark gas prices jumped at the start of this week as Europe struggles to replace Russian gas losses to fill storage sites ahead of the winter,” commented Ivanov.
The price of LNG as bunker fuel in the port of Sines in Portugal rose by US$285 to US$2,963/mt on 27 June. LNG prices are still significantly higher than those of traditional bunker fuels, with the price of MGO LS at the port of Sines on 27 June being quoted at US$1,520/mt.
Over week 26, the MDI index (comparison of MABUX MBP Index -market bunker prices- vs MABUX DBP Index -MABUX digital bunker benchmark-) continued to register an underestimation of 380 HSFO fuel grade in three ports out of four selected: Rotterdam – minus US$60, Singapore – minus US$84 and Fujairah – minus US$47. Houston remains the only overpriced port – plus US$50. MDI index did not have any single trend in the HSFO segment: in Rotterdam and Fujairah, the underprice ratio rose, while in Singapore it decreased. In Houston, the overprice premium rose as well.
VLSFO fuel grade, according to MDI, remained overpriced at all four selected ports: plus US$61 in Rotterdam, plus US$229 in Singapore, plus US$250 in Fujairah and plus US$73 in Houston. “Overprice premium rose in all ports, with the exception of Rotterdam. VLSFO fuel grade remains the most overvalued segment in the global bunker market,” pointed out Ivanov.
MGO LS, over the week MDI registered an overcharge of this fuel in all selected ports: Rotterdam – plus US$22, Singapore – plus US$44, Fujairah – plus US$147 and Houston – plus US$49. Rotterdam and Singapore returned into the overcharge zone.
“There are no significant changes registered in the correlation of market and benchmark digital MABUX (MDI) prices while the state of high volatility remains in global bunker market,” said Ivanov.
“We expect high volatility to continue in the global market next week. Bunker fuel prices may demonstrate sharp irregular fluctuations,” concluded Ivanov.
