The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX: Global bunker market does not have any firm trend amid high volatility on March 04.
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued firm upward evolution amid high volatility on Mar. 03:
380 HSFO - USD/MT – 675.33 (+15.44)
VLSFO - USD/MT – 889.07 (+28.34)
MGO - USD/MT – 1 034.69 (+52.04)
Instability in the bunker market with sharp daily irregular changes of indices leads to the fact that the correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark) still does not have a firm trend and changes randomly. On March 03, the Index showed that 380 HSFO fuel moved into the underpricing sector in all selected ports: Rotterdam - minus $ 13 (plus $ 7 the day before), Singapore - minus $ 42 (minus $ 26), Fujairah - minus $ 26 (plus $ 31) and Houston - minus $9 (plus $12). Such a situation indicates that the bunker indices rather slowly respond to changes in the world crude oil market.
In the VLSFO segment, the MABUX MBP/DBP Index registered an overpricing on March 03 in two out of four ports selected: Singapore - plus $35 (plus $60 the day before) and Fujairah - plus $90 (plus $89). In Rotterdam and Houston, according to the MABUX MBP/DBP Index, VLSFO fuel grade was undercharged by $8 (plus $44) and by $31 (100-percent correlation the day before), respectively. The most significant change was recorded in Rotterdam - 52 points.
MGO LS, according to the MABUX MBP/DBP Index, was significantly underpriced on March 03 in all selected ports: Rotterdam - minus $5 (minus $25), Singapore - minus $64 (minus $42), Fujairah - minus $37 (minus $15) and Houston - minus $36 (plus $23).
If geopolitical tensions persist and the military conflict in Ukraine escalates further, we expect world bunker prices to continue irregular changes where an uptrend will still prevail: 380 HSFO - plus-minus 13-18 USD / MT, VLSFO - plus-minus 18-23 USD /MT, MGO LS - plus-minus 5-50 USD/MT.
Source: mabux.com
