MABUX: Bunker prices may decline sharply on Jul 13

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) demonstrated irregular changes on July 12:

380 HSFO - USD/MT – 660.01 (-8.07)
VLSFO - USD/MT – 1002.88 (-3.99)
MGO - USD/MT – 1299.17 (+11.77)

As of July 12, a correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (Digital Bunker Prices Benchmark) in four largest global hubs showed that 380 HSFO fuel grade was undervalued in all selected ports: Rotterdam - by minus $111 (minus $101 the day before), in Singapore - by minus $140 ( minus $128 the day before) and in Fujairah - by minus $107 (minus $111 the day before), in Houston -by minus $26 (minus $39 the day before). MABUX MBP/DBP Index (MDI) for 380 HSFO fuel declined in half of selected ports. The most significant changes were registered in Singapore and Houston, where the undercharge level changed by minus 12 points and plus 13 points respectively on July 12.

VLSFO, according to the MABUX MBP /DBP Index, remained overcharged on July 12 in all selected ports. The overcharge ratio was registered in Rotterdam - plus $56 (plus $47 the day before), in Singapore by plus $265 (plus $264 the day before), in Fujairah - by plus $264 (plus $235 the day before), in Houston - plus $46 (plus $40 the day before). MDI for VLSFO increased in all selected ports. The most significant changes were registered in Rotterdam and Fujairah where the overcharge level increased by 9 points on July 12.

MGO LS, according to the MABUX MBP /DBP Index, was undervalued in two out of four selected ports on July 12: in Rotterdam – by minus $64 (minus $20 the day before), in Singapore - by minus $88 (minus $19 the day before). This fuel grade remained overvalued in Fujairah – by plus $191 (plus $243 the day before) and in Houston - by plus $44 (plus $55 the day before). MDI index for MGO decreased in all selected ports. The most significant changes were registered in Singapore, where the undercharge level increased by 69 points.

We expect global bunker prices may drop today. The price for 380 HSFO may decrease by 20-35 USD/MT, VLSFO may decline by 25-55 USD/MT, MGO may decrease by 30-60 USD/MT.


Source: www.mabux.com