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  • MABUX: Bunker Weekly Outlook, Week 20, 2022
  • 2022 May 19 12:07

    MABUX: Bunker Weekly Outlook, Week 20, 2022

    The Weekly Outlook was contributed by Marine Bunker Exchange (MABUX)

    Over the Week 20, the world bunker indices did not have a firm trend and changed irregular. The 380 HSFO index rose by 18.88 USD: from 718.62 USD/MT to 737.50 USD/MT. The VLSFO index went up more significantly: by 36.82 USD: from 933.73 USD/MT to 970.55 USD/MT. The MGO index, on the contrary, fell by 21.06 USD (from 1267.92 USD/MT to 1246.86 USD/MT). There are no signs of a sustainable trend’s formation in the global bunker market yet.

    The Global Scrubber Spread (SS) weekly average - the price difference between 380 HSFO and VLSFO - continued its firm growth over the week - plus $ 7.78 ($ 218.25 versus $ 210.47 last week). At the same time, in Rotterdam, the SS Spread’s average value, on the contrary, continued to decline: $ 178.33 vs. $ 184.43 (minus $ 6.50 compared to last week). In Singapore, the average price difference of 380 HSFO/VLSFO in turn showed an unexpectedly sharp growth, approaching again $200 mark: $191.50 vs. $121.83 (up $69.67 compared to last week). SS Spread values still don't have a firm dynamics. More information is available in the Price Differences section at mabux.com.

    Gas prices in Europe remain at high levels amid the ongoing escalation of the conflict in Ukraine. Prices for LNG as bunker fuel in the port of Sines (Portugal) fell on May 16 by 92 USD to 1917 USD/MT (versus 2009 USD/MT a week earlier). Nevertheless, LNG prices are still significantly higher than those of traditional bunker fuels: for comparison, the MGO LS price index at the port of Sines was quoted at 1293 USD/MT as of May 16.

    Over the week 20, the average correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark) has not changed: all major bunker fuels grades are in the overcharge area in all selected ports. Thus, 380 HSFO fuel’s overcharge margins in a week were: in Rotterdam - plus $ 16 (versus plus $ 29 the week before), in Singapore - plus $ 46 (plus $ 114), in Fujairah - plus $ 51 (plus $ 107) and in Houston - plus $79 (plus $102). In the 380 HSFO’s segment, MABUX MBP/DBP Index (MDI) showed a reduction in the overprice premium across all selected ports.

    VLSFO fuel grade, according to MDI, remained overpriced at all selected ports, while overprice premium narrowed here as well: plus $20 (plus $42 a week before) in Rotterdam, plus $50 (plus $51) in Singapore, plus $54 (plus $66) in Fujairah and plus $23 (plus $50) in Houston.

    As for MGO LS, MDI also registered an overpricing of this fuel grade over the week in all four selected ports: Rotterdam - plus $ 12 (plus $ 75 the week before), Singapore - plus $ 38 (minus $ 26), Fujairah - plus $ 178 (plus $126) and Houston - plus $118 (plus $155). Here MDI did not have a firm trend and changed irregular: an overcharge decline in Rotterdam and Houston, and rose in Singapore and Fujairah.

    In general, high volatility remains in the global bunker market, which prevents the formation of a sustainable trend in bunker prices.

    Some 3,742,300 metric tonnes (mt) of bunker fuel were sold in the Port of Singapore last month – 12.1% down on the 4,256,500 mt registered in April 2021. Last month’s total was also the second-lowest monthly total of 2022 after the 3,501,600 mt of bunker sales recorded in February. In March, reports of a bunker contamination crisis began to surface – and by mid-April, the Maritime and Port Authority of Singapore (MPA) estimated that the affected marine fuel had been supplied to around 200 ships of which 80 reported various issues with their fuel pumps and engines. The extent to which the episode has impacted confidence in the Singapore marine fuels market remains to be fully seen, nevertheless sales of HSFO saw a month-on-month (m-o-m) decrease. Marine fuel oil (MFO) 380 cSt fell from 962,600 mt in March to 914,500 mt in April while MFO 500 cSt sales plummeted from 124,900 mt to 27,200 mt. Despite the drop off in HSFO sales, low sulphur fuel oil (LSFO) sales held firm. Sales of LSFO 380 cSt rose from 1,741,700 mt in March to 1,832,600 mt in April. Low sulphur marine gasoil sales rose 2.5% on the month to 278,600 mt. The total amount of marine fuel sold during the first four months of the year at the Port of Singapore stands at 15,047,400 mt – 11.9% down on the 17,078,900 mt of bunker sales registered during the same period in 2021.

    We do expect bunker indices to change upwards next week amid high volatility and possible ban on Russian oil.

    By Sergey Ivanov, Director, MABUX

2022 July 4

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17:59 Plans on modernization of BAM and Transsib are outdated - Yury Trutnev
17:53 MARIN to have new defense department with Pepijn de Jong as manager
17:28 World's largest civilian hospital ship in port in Senegal
16:47 Programme on development of diesel engines manufacture to cover domestic demand in full - Mikhail Mishustin
16:29 ClassNK releases latest “PrimeShip-PSC Intelligence” mobile application
15:56 Sovcomflot shareholders decide not to allocate payment of dividends
15:34 TGS named successful bidder in the auction process for ION assets
15:34 Vestas secures 266 MW order in the USA
15:18 Saudi Global Ports awards contract for future-ready quay cranes to Shanghai ZPMC
15:00 Berth in Ugolniye Kopi is 50% complete — Chukotka Governor
14:39 Fire at Mongstad extinguished - Equinor
14:21 ClassNK releases comprehensively revised structural rules
14:10 ASCO's ferry Professor Gul returns to operation after overhaul
13:47 Petrofac and Hitachi Energy to collaborate in growing offshore wind market
13:34 Fishery Shipowners Association President Aleksey Osintsev to speak at Ship Repair, Modernization and Components Conference
13:17 Boskalis expands presence in the US with opening of new offshore renewables office in Providence, Rhode island
12:55 Amur Shipyard lays down corvette Bystry of Project 20385
12:33 BPA's statistics review shows three-month port traffic was up 7.3% to 111.8 million tonnes
12:19 Brisbane offers world-class facilities as it joins global cruise revival
12:03 Eidesvik Offshore ASA appoints new CFO
11:25 TransContainer launched multimodal service between Russia and India via Novorossiysk and Suez Canal
11:07 MarineMax Naples names new Vice President
10:32 Holland America Line sees a surge in demand for Alaska cruising
10:16 Maritime humanitarian corridors for foreign vessels operate in the Black Sea and in the Azov Sea
09:47 R-Flot launches two buoy tenders of Project 3052
09:19 Crude oil futures resume growth
09:00 MABUX: Irregular fluctuations to prevail in Global bunker market on Jul 04

2022 July 3

15:11 Van Oord orders second pair of new generation water injection vessels
14:03 Manor Renewable Energy welcomes two new additions to the fleet
12:52 Seabourn takes delivery of Seabourne Venture, the Line's first purpose-built ultra-luxury expedition ship
10:43 INEOS holds a naming ceremony for its new ethane carrier the Pacific INEOS Grenadier

2022 July 2

14:51 Two MOL-operated vessels earn 2021 'Best Quality Ship Awards'
12:18 Kongsberg Maritime wins stabiliser contract for CMAL's two new ferries
11:34 INEOS in Köln receives state funding for Green Hydrogen feasibility study to cut CO2 by more than 100,000 tonnes per year
10:46 Gary Wilson retires from ABP

2022 July 1

18:21 “K” Line has enhanced the shipboard cyber security with surveillance of ship’s communication 24/7
17:57 IAA PortNews’ summary of previous week news
17:34 INPEX, IHI, MOL demonstrate clean ammonia supply chain linking UAE and Japan
17:18 Stolt-Nielsen Limited reports unaudited results for the 2Q and 1H, 2022
17:00 Emperium launches electric catamaran Ecohod
16:44 R-FLOT lays down two small cruise ships
16:23 Austal USA awarded up to US$3.3 bn contract for 11 USCG offshore patrol cutters
16:07 Freeport LNG says it may resume partial liquefication operations in early Oct 2022
15:47 TotalEnergies Marine Fuels and MOL Group complete first biofuel bunker operation of a vehicle carrier in Singapore
15:28 State Duma approves bill on increasing fines for violation of coal handling regulations
15:10 DEME Group lists on Euronext Brussels
14:49 CPC Marine Terminal operates two of its three Single Point Moorings
14:27 CPC Terminal paid over RUB 5.28 billion for recovery of damage caused by oil spill
14:27 PM Fumio Kishida says Sakhalin 2’s new operator will not cause an immediate halt in LNG shipments to Japan
14:05 Spartacus nominated for KNVTS Ship of the Year
13:42 2 MOL-operated vessels earn 2021 'Best Quality Ship Awards'
13:20 Port of Houston container activity rises 20% in May 2022
13:03 Petersburg Oil Terminal confirms its ISO compliance
12:44 Monthly LNG imports from USA to EU in June for the first time exceeded gas supplied via pipeline from Russia – IEA
12:40 Solstad Offshore announces contract awards for two CSVs
12:25 Russian Railways' network loading fell by 2.8% in HI’2022
12:10 Maersk Tankers launches a new digital solution to track and report vessel emissions
12:00 Hiab launches next generation LOGLIFT forestry cranes
11:42 RF Government to establish new operator of Sakhalin Energy