MABUX: Great fall in global bunker prices to continue on Sep 02

Global bunker indices to continue plunging on Sept 02

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) continued firm downward move on September 01:

380 HSFO - USD/MT – 564.69 (-7.82)
VLSFO - USD/MT – 819.48 (-17.45)
MGO - USD/MT – 1 186.75 (-19.70)

As of September 01, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices and the digital bunker price standard MABUX) did not have any firm trend in the HSFO segment and registered the comeback of the Port of Rotterdam to the undercharge zone in the VLSFO segment and the Port of Houston to the overprice zone in the MGO LS segment MGO.

380 HSFO fuel grade, according to MDI, remained undercharged on September 01 at all four selected ports. The underprice margins were: Rotterdam - minus $70 (minus $54 the day before), Singapore - minus $138 (minus $139), Fujairah - minus $121 (minus $105), Houston - minus $18 (minus $19). The MDI index did not have a firm dynamics here: the underprice premium decreased in Singapore and Houston, but rose in Rotterdam and Fujairah.

In the VLSFO segment, the port of Rotterdam returned to the underestimation zone: minus $ 1 versus plus $ 1 a day earlier. All other ports remained overcharged: Singapore - plus $24 (plus $23), Fujairah - plus $54 (plus $62) and Houston - plus $38 (plus $46). Overcharge premium had minor changes.

In the MGO LS segment, the port of Houston left the undercharge zone on September 01 (plus $18 vs. minus $8 the day before) and joined Fujairah - plus $153 (plus $135). Thus, only Rotterdam and Singapore remained underpriced - minus $60 (minus $13) and minus $101 (minus $64) thereafter. The underestimation premium as well as overestimation one grew slightly.

We expect global bunker indices to continue plunging on September 02: 380 HSFO – minus 10-20 USD/MT, VLSFO – minus 15-25 USD/MT, MGO LS – minus 15-35 USD/MT.

Source: www.mabux.com