• 2023 January 6 10:58

    MABUX: Bunker Weekly Outlook, Week 01, 2023

    We expect bunker prices will follow crude oil general trend and drift lower next week

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

    Over the Week 01, MABUX global bunker indices after taking a short pause began to decline. The 380 HSFO index fell by 10.17 USD: from 488.93 USD/MT last week to 478.76 USD/MT. The VLSFO index, in turn, lost 15.60 USD (669.58 USD/MT versus 685.18 USD/MT last week). The MGO index also fell by 10.08 USD (from 1031.10 USD/MT last week to 1021.02 USD/MT). At the moment, the downward trend in the global bunker market continues.

    Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO – turned into narrowing trend over the Week 01 - minus $5.43 ($190.82 vs. $196.25 last week). In Rotterdam SS Spread was down $4.00 to $151.00 from $155.00 last week. In Singapore, the price difference of 380 HSFO/VLSFO also showed a decrease of $2.00 ($210.00 vs. $212.00 last week). We expect SS Spread may continue its moderate decline next week. More information is available in the "Differentials" section at www.mabux.com.

    Natural gas prices in Europe have plunged over the past few months. Meantime, 60 LNG tankers, or ~10% of the LNG vessels in the world, are currently sailing or anchored around Northwest Europe, the Mediterranean, and the Iberian Peninsula. Such vessels are considered floating LNG storage since they cannot unload, something that is impacting the price of natural gas and freight rates.

    The price of LNG as bunker fuel in the port of Sines (Portugal) continued to decline and reached 1595 USD/MT as of January 03 (minus 56 USD compared to the previous week). Thus, the LNG price continues to approach the cost of conventional bunker fuel grade: on January 03, the price of MGO LS at the port of Sines was quoted at 1031 USD/MT.

    During the Week 01, the MDI index (comparison of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index)) remained fuel 380 HSFO underestimated in all four selected ports. Meantime, underestimation average showed an increase in all ports and amounted to: in Rotterdam - minus $122, Singapore - minus $129, Fujairah - minus $166 and in Houston - minus $83.

    In the VLSFO segment, according to MDI, Singapore and Fujairah moved back into the underprice zone. Thus, this type of fuel is currently undervalued in all four selected ports. Underprice ratio widened slightly over the week: Rotterdam - minus $ 73, Singapore - minus $ 13, Fujairah - minus $ 8 and Houston - minus $ 42.

    In the MGO LS segment, Fujairah remains the only overvalued port: plus $128. In all other ports, the MDI index recorded an undervaluation of MGO LS: Rotterdam - minus $ 83, Singapore - minus $ 63 and Houston - minus $ 100. Undercharge premium increased, while overcharge one dropped.

    More information on the correlation between market prices and the MABUX digital benchmark is available in the “Digital Bunker Prices” section at www.mabux.com.

    Russia plans to increase its diesel exports in January before European Union sanctions on crude oil start in February. Fuel shipments from Russia’s ports in the Baltic and Black Sea are set to increase to 2.68 million tonnes in January, good for an 8% month-on-month increase from December’s volume and the highest export rate since January 2020. The European Union will ban Russian oil product imports by Feb. 5. This follows a ban on Russian crude that took effect in December. Exports of Russia’s flagship Urals crude blend from the Baltic Sea ports will, however, fall to around 5 million tonnes this month from 6 million tonnes in November, due to an EU embargo on Russian oil and a Western price cap, according to Reuters calculations. Some estimates have predicted it could fall as low as 4.7 million tonnes. The $60 per barrel price cap introduced by the European Union, G7 nations, and Australia allows non-EU countries to import seaborne Russian crude oil, but prohibits shipping, insurance, and reinsurance companies from handling cargoes of Russian crude unless it is sold for under $60.

    Vessels calling at Israeli ports will need to burn bunkers with a sulphur content not exceeding 0.10% under new regulations taking effect next month. The new rules will enter into force on 23 February, 2023. Last month the 79th Marine Environment Protection Committee (MEPC) adopted a proposal to designate the Mediterranean as a Sulphur Emission Control Area (SECA). The regulation, which will require ships without emission abatement technology to burn fuel with a 0.10% maximum sulphur content, is expected to enter into force in May 2024, with the new limit taking effect on 1 May 2025.

    Oil edged lower during the week, weighed down by concerns about weak demand due to the state of the global economy and rising COVID cases in China. We expect bunker prices will follow crude oil general trend and drift lower next week.

    By Sergey Ivanov, Director, MABUX




2024 June 21

18:09 HGK Shipping names future-fuel-ready dry goods inland waterway vessel
17:53 Chinese shipyards’ plans for next-generation ships
17:41 Emanuele Grimaldi re-elected as Chairman of the International Chamber of Shipping
16:40 MAN Energy Solutions rejoins SEA-LNG
16:20 India to create $9bn mega port near Mumbai
15:58 Hanwha acquires U.S. Philly Shipyard for $100 million
15:25 DP World completes $400m Сallao Port expansion
14:10 Var Energi, OMV Norge and Lime Petroleum awarded CO2 storage licence in North Sea
13:44 Creos Luxembourg, Fluxys and GRTgaz announce the inclusion of project HY4Link in the European hydrogen network development plan
12:43 Fincantieri and Viking sign contracts for two cruise ships
12:25 First of two new-generation emergency response vessels delivered to Hong Kong Fire Service
12:16 MPA clarifies on liability claims for pollution damage
11:59 A fleet of four Union Maritime tankers to be fitted with Norsepower Rotor Sails
11:38 PortNews Media Group celebrates its 20-year anniversary
11:25 TotalEnergies launches the Ubeta gas development to supply Nigeria LNG liquefaction plant
11:13 SMST secures contract from Cochin Shipyard for mission equipment for North Star SOV
10:38 Lloyd’s Register and the World Liquid Gas Association issue report on the future of dual-fuel LPG engines
10:17 Equinor secures exploration permit for CO2 storage in Denmark
09:56 CMA CGM to reshuffle EURONAF & TMX 2, linking Turkey, Spain, France, Malta, Western Italy, Sicily, Algeria
09:53 Completion of TGS and PGS merger slated for Jul 1, 2024

2024 June 20

18:06 Mammoet begins assembly of world’s biggest land-based crane
17:41 KEZAD Group signs lease agreement with Astha Biotech for AED 44m Microalgae Plant in Abu Dhabi
17:28 DNV's SRC software service launches in Europe
16:19 Equinor awarded two new CO2 storage licenses in the North Sea
16:15 Saudi Global Ports expands capacity with new QC and RTG cranes
15:31 Naftemporiki: Tanker prices on secondary market show signs of stabilization
15:11 Kuala Baram dredging project will improve Miri Port
14:29 A consortium of DEME and Hellenic Cables secured large contract for Princess Elisabeth Island
14:12 Russell Group: German port workers strike could cost $6 billion in lost trade
13:18 Norway and Singapore partner to enhance green maritime collaboration
13:05 Jan De Nul wins contract to supply, install and test three 220 kV AC cables
12:31 MPA reports considerable progress in oil spill recovery efforts
12:07 Qatar Shipyard Technology Solutions to partner with Armada Technology to use its hull air lubrication system
11:44 MABUX: Bunker Outlook, Week 25, 2024
11:24 MPCC announces vessel acquisitions and new charter package deal
10:36 Topsoe, ABB and Fluor join forces for SOEC factory development in US
09:47 Shipping: Greece remains on the white list of the Paris MoU

2024 June 19

18:17 Wärtsilä propulsion solutions expected to deliver 5% fuel savings for International Seaways tankers
17:42 TGS market overview report: Strong expectations continue in offshore wind despite short-term downgrades
17:09 Vestas receives 577 MW order in Australia for second stage of the 1.3 GW Golden Plains wind project
16:37 Wintershall Dea makes discovery in Cuvette exploration well
16:07 Equinor expands renewables portfolio in Poland with a new solar plant
15:52 Shell signs agreement to acquire Pavilion Energy
15:19 LR releases its 3rd alternative fuels report concerning LPG as marine fuel
14:39 Greek-owned Liberian-flagged ship hit in Red Sea sinks
14:32 Samsung Heavy Industries unveils revolutionary K-PAW welding technology
13:51 DOF awards new Constructor Compact ROV systems contract to Kystdesign
13:47 Mitsubishi Shipbuilding receives orders for Japan's first methanol-fueled RORO cargo ships
13:28 Sirius Shipping to charter out its new tanker duo to Preem for transportation of renewable fuels, feedstock
12:39 Chartwell and Vard to advance new SOV design working with North Star
11:23 Wartsila launches world’s first large-scale 100% hydrogen-ready engine power plant
11:14 Industrial-scale floating green ammonia plant project enters next phase
10:06 ABP signs MOU with Marine Power Systems to advance floating offshore wind technology
09:44 Port of Antwerp Bruges: Deurganckdok oil spill clean-up completed

2024 June 18

18:13 Atlantic Towing and Svitzer modernise Halifax port fleet with new escort tugboats
17:38 Port of Long Beach sets $760 million annual budget
17:28 Unifeeder and MPC Container Ships announce a new collaboration to make joint investments into Energy Efficiency Technology
17:16 Port of Koper welcomes Astrid Maersk, the world’s second large green methanol-enabled vessel
16:43 Gasum plans a large-scale biogas plant in Sweden
16:15 GONDAN Shipbuilders secures 31-meters passenger catamaran contract from Líneas Romero
15:39 CMA CGM to strengthen its INDAMEX service connecting Indian Subcontinent with US East Coast
15:11 Maersk wins a heavy lift contract from Vestas
14:07 South Korea bolsters shipbuilding industry with $10.75 billion financial support
13:41 MOL joins SFC focused on decarbonizing international logistics
13:11 Fred. Olsen Cruise Lines joins the ISWAN
12:22 Carnival Corporation celebrates shore power launch at PortMiami after exceeding industry-leading milestone
11:45 Nel ASA set to become a fully dedicated electrolyser company
11:24 Temasek signs agreement to divest Pavilion Energy
11:13 IMO's NCSR agreeds pilot transfer arrangements and amendments to SOLAS regulation V/23
10:47 LR awards Quoceant an IECRE Feasibility Statement for the Q-Connect