MABUX: Sharp upward deviation is expected in Global bunker market on Oct 04

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 downward changes on October 03:

380 HSFO - USD/MT – 486.57 (-14.61)
VLSFO - USD/MT – 756.83 (-3.23)
MGO - USD/MT – 1 092.81 (-3.73)

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 October 03 in all selected ports. The underestimation premium was registered as: Rotterdam - minus $102 (minus $97 the day before), Singapore – minus $160 (minus $150 the day before), Fujairah – minus $151 (minus $152), in Houston – by minus $73 (minus $67 the day before). The underestimation level increased in all selected ports except of Fujairah. The most significant changes were registered in Singapore, where the undercharge level increased by 10 points.

In the VLSFO fuel grade segment, three out of four selected ports, according to the MDI index, were in the overcharge zone: Singapore – plus $56 (plus $59 the day before), Fujairah – plus $60 (plus $49 the day before) and Houston plus $20 (plus $21 the day before). In Rotterdam this fuel grade remained undercharged by minus $16 (minus $10 the day before). As per MDI – downward trend prevails in the VLSFO segment: the MDI level declined in most of selected ports. The most significant changes were registered in Fujairah, where the overcharge level increased by 11 points.

MGO LS was undercharged in two out of four selected ports: in Rotterdam – by minus $78 (minus $90 the day before), in Singapore – by minus $116 (minus $125 the day before). This fuel grade was overcharged in Fujairah – by plus $133 (plus $156 the day before) and in Houston – by plus $17 (minus $55 the day before). MDI index in MGO LS segment increased in all selected ports. The most significant changes were registered in Houston, where the undercharge level decreased by 72 points, as a result this fuel grade became overcharged.

We expect Global bunker prices may demonstrate sharp upward changes on October 04: the price for 380 HSFO may increase by 15-20 USD/MT, VLSFO – by 20-30 USD/MT, MGO LS – may rise by 25-40 USD/MT.

Source: www.mabux.com