According to the weekly outlook of Marine Bunker Exchange (MABUX) for fuel prices, global bunker indices continued firm decline over Week 50 of the year.
However, there are signs of slight upward correction last few days. As a result, the 380 HSFO Index fell to US$460.81/MT, the VLSFO Index decreased to US$660.12/MT and the MGO Index declined to US$988.54/MT.
Global Scrubber Spread (SS) – the price differential between 380 HSFO and VLSFO – resumed its decline over week 50 – minus US$14.84, reaching US$199.31.
In Rotterdam, SS Spread also fell by minus US$28 to US$152, coming close to US$150. In Singapore, the 380 HSFO/VLSFO price differential showed the most significant decrease of US$37 to US$210.
“We expect SS Spread to continue shrinking next week,” commented a MABUX official.
Meanwhile, the price of LNG as bunker fuel at the port of Sines in Portugal fell to US$2,427/MT on 12 December, minus US$183 compared to the previous week.
However, the price of LNG surpasses the one of the most expensive traditional bunker fuels by US$1,492, on 12 November, the price of MGO LS at the port of Sines was quoted at US$935/MT.
Over Week 50, the MDI index (comparison of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index)) kept underpricing status of 380 HSFO fuel grade in all four selected ports. Undercharge ratio decreased slightly in all ports except for Houston and showed, in Rotterdam – minus US$115, Singapore – minus US$120, Fujairah – minus US$174 and in Houston – minus US$71.
In the VLSFO segment, according to MDI, Singapore and Fujairah are still overvalued, plus US$36 and plus US$47, respectively. In Rotterdam and Houston, this type of fuel was underestimated by an average minus US$49 and minus US$12. The underpricing rose, while the overpricing changed irregularly.
In the MGO LS segment, MDI continued to register fuel underpricing in two out of four selected ports: Rotterdam – minus US$64 and Houston – minus US$38. Singapore and Fujairah remained in the overcharge zone, plus US$8 and plus US$182, respectively. The undercharge premium has decreased, while overestimation has increased.
“The Global fuel market is still waiting for Russia’s reaction to the price cap imposed by the European Union on December 05 on Russian oil. In this situation, we expect the downtrend in the global bunker market may continue next week,” commented Sergey Ivanov, director of MABUX.
