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) plunged on November 29:
380 HSFO / USD/MT – 481.05 (-16.47)
VLSFO / USD/MT – 614.02 (-18.77)
MGO / USD/MT – 728.89 (-14.47)
The current sharp drop of market quotations made serious changes in the correlation of the MABUX MBP Index (Market Bunker Prices vs MABUX DBP Index. In particular, as of November 29, the Index showed an underestimation of 380 HSFO fuel in all selected ports: in Rotterdam - minus $ 51 (minus $ 21 the day before), in Singapore - minus $ 36 (minus $ 26), Fujairah - minus $ 35 (minus $ 16) and in Houston - minus $ 51 (plus $ 13). The most significant changes were recorded in Rotterdam and in Houston - an increase of underpricing by $ 30 and by $ 64 respectively.
VLSFO, according to the MABUX MBP / DBP Index, was overvalued on November 29 at two out of four ports selected: Singapore - plus $ 16 (plus $ 30 the day before) and Fujairah - plus $ 3 (plus $ 30). At the same time, in Rotterdam, an underestimation of this fuel grade is minus $ 37 (minus $ 7) and in Houston - minus $ 71 (plus $ 12). The main trend is the rising of the VLSFO underestimation margins.
As for MGO LS, according to the MABUX MBP / DBP Index, this fuel grade was underestimated on November 29 at three ports out of four selected: in Rotterdam - minus $ 108 (minus $ 58 the day before), in Singapore - minus $ 51 (minus $ 39 ) and in Houston - minus $ 106 (minus $ 6). The only port where the MABUX MBP / DBP Index still registers overvaluation is Fujairah - plus $ 5 (plus $ 13). The most significant changes were the increase in the underestimation of MGO LS in Rotterdam by $ 50 and in Houston by $ 100.
The bunker market is expected to turn to upside correction on November 30, while the existing difference in MABUX MBP / DBP Index will be gradually reduced.
We expect global bunker prices to turn into upward correction today: 380 HSFO - plus 4-10 USD, VLSFO - plus 5-13 USD, MGO LS - plus 15-20 USD.
Source: www.mabux.com
