The Marine Bunker Exchange (MABUX) World Bunker Index has continued to drift lower on week 47, with index 380 HSFO decreasing to US$495.62/MT, the VLSFO index dropping to US$633.58/MT and the MGO index falling to US$746.24/MT.
The weekly average Global Scrubber Spread (SS) showing the difference in price between 380 HSFO and VLSFO remained virtually unchanged during the week, with a drop of only US$0.26.
At the same time, the average SS Spread in Rotterdam has also remained stable at US$133.33, while the average SS Spread in Singapore decreased to US$157.53.
MABUX representatives, however, believe that the suspension of the upward trend in the SS Spread index is temporary at the moment.
Meanwhile, gas prices in Europe remained volatile, according to MABUX. On 24 November, another increase in prices for LNG as bunker fuel was recorded at the port of Sines in Portugal to US$2,050/MT. Currently, the price of LNG is US$1,328 up the price of MGO LS which stands at US$722/MT.
Over the past week, correlation MABUX Market Bunker Prices (MBP Index) vs MABUX Digital Benchmark Index (DBP Index) in the four global largest hubs showed that 380 HSFO fuel was undervalued in three out of four ports.
In Rotterdam, minus US$15, in Singapore minus US$ 19, and in Fujairah minus US$13. Only in Houston, the MABUX MBP/DBP Index recorded an overcharge of US$12.
Therefore, VLSFO fuel grade, according to the MABUX MBP / DBP Index, was undervalued only in the port of Rotterdam, by minus US$5. At all other ports, the overpricing was registered as plus US$27 in Singapore, plus US$33 in Fujairah and plus US$1 in Houston.
“The trend towards the transition of VLSFO fuel grade to the overcharge segment continues,” noted MABUX.
As for the MGO LS, the MABUX MBP / DBP Index continued to register an overpricing only in Fujairah by plus US$31, while in all other ports, MGO LS was underestimated: in Rotterdam by minus US$39, in Singapore by minus US$20 and in Houston, by minus US$1.
