MABUX: Bunker Weekly Outlook, Week 43, 2021
The Weekly Outlook was contributed by Marine Bunker Exchange
On a Week 43, the MABUX World Bunker Index demonstrated irregular changes during the week. The 380 HSFO index declined by 8.40 USD: from 542.16 USD / MT to 533.76 USD / MT. The VLSFO index increased by 8.65 USD: from 647.86 USD / MT to 656.51 USD / MT, while the MGO index added 4.57 USD (the rise from 774.51 USD / MT to 779.08 USD / MT).
MABUX temporarily suspends publication of the MABUX ARA LNG Bunker Index as the LNG bunkering market has practically stalled due to falling demand caused by a sharp increase in gas prices in Europe. We believe the gas crisis is temporary and expect LNG bunkering operations to resume by the end of this year. The publication of the MABUX ARA LNG Bunker Index will resume as soon as the LNG bunker market recovers.
The average weekly Global Scrubber Spread (SS) - the difference in price between 380 HSFO and VLSFO – continued to rise during the week and amounted to $ 115.81 (versus $ 103.05 last week). The average weekly SS Spread in Rotterdam also widened and remained well above the $ 100 mark: $ 126.67 (against $ 109.33 last week, plus $ 17.34). The average SS Spread in Singapore, also rose and also reached the psychological mark of $ 100: $ 120.33 versus $ 96.00 last week ( $ 24.33). More information is available in the Differentials section of www.mabux.com.
Correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (MABUX Digital Benchmark) in the four global largest hubs over the past week showed that 380 HSFO fuel was overvalued in three out of four selected ports (except of Houston), where the Index recorded an underpricing of $ 1 (vs. minus $ 9 a week earlier). In other ports, 380 HSFO was overcharged: in Rotterdam - plus $ 6, in Singapore - plus $ 5 and in Fujairah - plus $ 7. Overall, MBP Index became much closer to DBP Index ( Plus $23, $33,$21 respectively the week before).
VLSFO fuel grade, according to the MABUX MBP / DBP Index, was in the overvaluation zone in two out of four selected ports: In Rotterdam by plus $9 and Fujairah – by plus $1. In Singapore and Houston this fuel grade became undervalued by minus $1 and minus $3 respectively.
The MABUX MBP / DBP Index registered an undercharge of MGO LS fuel in all selected ports: minimum value in Houston (minus $ 6), maximum value in Rotterdam (minus $ 36).
Singapore’s bunker fuel sales for the 380 CST HSFO grade fell to a one-year low in the world’s largest bunkering port in September amid limited cargo availability, while total marine fuel sales volume also dipped overall last month, reflecting weak bunker demand.
Bunker fuel sales of 380 CST HSFO in the city-port slipped 7.1% on the month in September to a one-year low of 908,000 mt, latest data by the Maritime and Port Authority, or MPA, of Singapore showed.
Bucking the overall downtrend was sales of low sulfur (0.1%) marine gasoil, which was up 14.4% month on month at 331,700 mt, but 8.6% lower on the year, while 0.5%S marine gasoil sales rose 0.2% month on month to 26,800 mt, MPA data showed.
Total marine fuel sales in Singapore slid 3.4% month on month and 6.7% on the year in September to 3.935 million mt.
Source: www.mabux.com
