Global bunker prices to extend gains today
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) turned into firm upward evolution on Feb.21:
380 HSFO - USD/MT – 590.36 (+7.81)
VLSFO - USD/MT – 754.80 (+8.74)
MGO - USD/MT – 871.68 (+7.68)
Europe’s benchmark natural gas prices continued to fall, while the expected strong wind power generation due to storms in northwest Europe is set to ease the power crisis in EU. Prices for LNG as a bunker fuel at the port of Sines (Portugal) on February 21 fell by 229 USD to 2100 USD/MT. However, LNG prices are still significantly higher than those of traditional bunker fuel grades. The cost of MGO LS an the port of Sines on February 21 was quoted at 875 USD/MT.
The correlation of MABUX MBP Index (Market bunker price) vs MABUX DBP Index (MABUX digital bunker price benchmark) showed on February 21 that 380 HSFO fuel was overpriced in one port out of four selected: in Houston, the MABUX MBP/DBP Index registered a $5 overpricing (plus $2 the day before). All other ports are underestimated: Rotterdam - minus $1 (no change), Singapore - minus $21 (minus $20) and Fujairah - minus $18 (minus $17). Changes in the MABUX MBP/DBP Index ratio were not significant.
VLSFO, according to the MABUX MBP/DBP Index, was overvalued on February 21 in all selected ports. VLSFO overprice margins were registered as: in Rotterdam - plus $25 (plus $19 a day earlier), in Singapore - plus $43 (no change), in Fujairah - plus $56 (no change) and in Houston - plus $14 (minus $12). The MABUX MBP/DBP Index ratio for the VLSFO segment also has not changed considerably.
MGO LS, according to the MABUX MBP/DBP Index, was underpriced on February 21 in two out of four selected ports: Rotterdam - minus $9 (minus $15 the day before) and Singapore - minus $8 (plus $1). In Fujairah and Houston, the MABUX MBP/DBP Index registered an overpricing by plus $28 (plus $12) and plus $45 (plus $50). The most significant change was the growth of MGO LS overpricing at the port of Fujairah by 16 points.
We expect global bunker prices to extend gains today: 380 HSFO - plus 4-7 USD, VLSFO - plus 5-9 USD, MGO LS - plus 7-12.
Source: www.mabux.com
