MABUX: Downward trend to continue in Global Bunker market on Sept 01

The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) demonstrated sharp downward changes on August 31:

380 HSFO - USD/MT – 572.51 (-20.87)
VLSFO - USD/MT – 836.93(-24.99)
MGO - USD/MT – 1 206.45 (-34.17)

380 HSFO fuel grade, according to MDI (comparison MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark)), were undervalued on August 31 in all selected ports. The underestimation premium was registered as: Rotterdam - minus $54 (minus $57 the day before), Singapore - minus $139 (minus $125 the day before), Fujairah - minus $105 (minus $127 the day before), in Houston – by minus $19 (minus $18 the day before). MDI increased in half of selected ports. The most significant changes were registered in Fujairah, where the undercharge level declined by 22 points.

In the VLSFO fuel grade segment, all four selected ports, according to the MDI index, were in the overcharge zone: Rotterdam - plus $1 (minus $14 the day before), Singapore - plus $23 (plus $13 the day before), Fujairah - plus $62 (plus $32 the day before) and Houston plus $46 (plus $31 the day before). As per MDI, upward trend registered in the VLSFO segment: the overcharge premium increased for all selected ports. The most significant changes were also registered in Fujairah– the overcharge level increased by 30 points.

MGO LS was undercharged in three out of four selected ports: in Rotterdam – by minus $13 (minus $37 the day before), in Singapore – by minus $64 (minus $93 the day before), in Houston – by minus $8 (minus $2 the day before). In Fujairah this fuel grade remained overcharged by plus $135 (plus $121 the day before). MDI index increased in most of selected ports. The most significant changes were registered in Singapore, where the undercharged level decreased by 29 points.

We expect Global bunker prices to continue downward trend on Sep.01: the price for 380 HSFO may decline by 10-15 USD/MT, VLSFO – by minus 15-20 USD/MT, MGO LS – may decline by 20-35 USD/MT.

Source: www.mabux.com