MABUX: Global bunker prices may stay steady with no firm trend on Jul 19

The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued slight downward movement on Jul.16:

380 HSFO - USD/MT – 450.18 (-4.12)
VLSFO - USD/MT – 558.79 (-4.13)
MGO - USD/MT – 650.24 (-4.97)

The MABUX ARA LNG Bunker Index– the average price of LNG as a marine fuel in the ARA region, continued slight downward trend on July 19: 769.25 USD/MT (-0.46 USD). The LNG Bunker Index exceeds the cost of MGO LS in the Port of Rotterdam by 181.25 USD (588 USD/MT as of July 16), the difference in price compared to the day before increased by $ 2. LNG Bunker Indices are available at www.mabux.com.

As of July 16, 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: from minus $ 17 in Houston (minus $ 21 a day earlier) to minus $ 30 (minus $ 35) in Rotterdam and minus $ 48 (minus $ 50) in Singapore. The underpricing ratio, according to MABUX DBP Index for 380 HSFO fuel, slightly decreased in all selected ports.

VLSFO, according to the MABUX DBP Index, was also underestimated in all selected ports on July 16. The underestimation ranged from minus $ 21 in Houston (minus $ 25 the day before) and minus $ 5 (minus $ 11) in Rotterdam to minus $ 35 (minus $ 41) in Fujairah and minus $ 40 (minus $ 42) in Singapore. The most significant change in VLSFO’s MBP/DBP Index was registered in Rotterdam and Fujairah (underpricing down $ 6), while in Rotterdam the MBP/DBP Index correlation has almost reached 100-percent mark.

On July 16, MABUX DBP Index also registered the underpricing of MGO LS in all selected ports ranging from minus $ 17 (minus $ 22 the day before) in Houston to minus $ 50 (minus $ 59) in Rotterdam, minus $ 74 (minus $ 82) in Singapore and minus $ 64 (minus $ 66) in Fujairah. In Rotterdam, the MBP/DBP Index fell by $ 9 - the most significant change.

We expect global bunker prices do not have any firm trend today and may change sideways: 380 HSFO: 0 - plus 1 USD/MT, VLSFO - plus 1-2 USD/MT, MGO LS - plus-minus 1-4 USD/MT.

Source: www.mabux.com