Oil prices spiked to 13-month highs after the Texas Freeze, which knocked out as much as 4 million barrels per day (bpd) US oil production and 6 million bpd of refining capacity.
[s2If is_user_logged_in()]The production outages have created a tighter supply situation that has been absent for most of the pandemic, according to the latest Marine Bunker Exchange (MABUX) report.
MABUX World Bunker Index has shown a firm uptrend during the week with the 380 HSFO index rising to US$416.90/mt, VLSFO increasing to US$525.67/mt, while MGO climbed to US$591.46/mt.
At the same time, the global scrubber spread (SS) – the difference in price between 380 HSFO and VLSFO – has not had any significant changes during the week and averaged US$105.66.
The SS in Rotterdam has narrowed during the week from US$111 up to US$108, but the average SS for the week has increased to US$110.5.
In Singapore, the SS increased during the week to US$129, however, the average weekly SS index has fallen unexpectedly by US$17 to US$126.17, compared with last week’s figure.
“All in all, the SS upward trend has been slowing down and could turn into a downward correction in the short term,” commented MABUX.
The correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark) in the four largest global hubs during the past week showed that 380 HSFO and MGO LS fuels remain undervalued in all selected ports.
According to DBP Index, 380 HSFO was undercharged on average from US$5/tonne in Houston to US$23/tonne in Rotterdam, while the MGO LS was also underpriced ranging from US$20/tonne in Fujairah to US$37/tonne in Singapore.
In the meantime, in Houston, there was a 100% correlation between the MBP vs DBP indices for MGO LS grade. The only fuel, according to the DBP Index, which remains overvalued in all selected ports is VLSFO with the overcharge ranging from US$2/tonne in Singapore to US$17/tonne in Houston.
The Coalition for Energy of the Future has unveiled its first seven projects aimed at accelerating the development of more environmentally friendly future energies and technologies for the transport and logistics sectors, mentions MABUX in its report.
The coalition is comprised of 14 companies from a range of industries, of which the seven concrete actions include a biofuel project which aims to test the first bio-crude oil dedicated to maritime and develop the use of third generation biofuels.
The coalition will also seek to draw a pathway for bioLNG toward carbon neutrality, highlighting key issues to be addressed. Other projects will look at green hydrogen for trucks, green electricity, a digital ‘ecocalculator’ of the global supply chain and intermodal green hubs, according to MABUX.
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