2021 August 4 08:21
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) turned into sharp decline on Aug.03:
380 HSFO - USD/MT – 454.45 (-7.62)
VLSFO - USD/MT – 557.00 (-7.79)
MGO - USD/MT – 650.73 (-7.00)
The MABUX ARA LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, rose sharply on August 04: 919.66 USD/MT (+126.39 USD). The LNG Bunker Index exceeds the cost of MGO LS in the port of Rotterdam by 340.66 USD (579 USD/MT as of 03 August), the difference in price compared to the day before has increased by $ 142.39 and exceeded $ 300 mark. LNG Bunker Indices are available on www.mabux.com.
As of August 03, 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 remained undervalued in all selected ports: minus $ 19 in Houston (minus $ 25 the day before), minus $ 16 (minus $ 32) in Fujairah, minus $ 35 (minus $ 36) in Rotterdam and minus $ 34 (minus $ 47) in Singapore. Underestimation ratio of this fuel grade declined sharply in Fujairah (minus $ 16) and Singapore (minus $ 13).
VLSFO, according to the MABUX DBP Index, was also underestimated in all selected ports on 03 August. The VLSFO was: minus $ 10 in Houston (minus $ 20 the day before), minus $ 27 (minus $ 46) in Fujairah, minus $ 29 (minus $ 46) in Singapore and minus $ 23 (minus $ 34) in Rotterdam. Underestimation margins have also narrowed, including Singapore by $ 17 and Rotterdam by $ 11.
On August 03, MABUX DBP Index also registered the underpricing of MGO LS at all selected ports: in Houston - minus $ 26 (minus $ 34 the day before), in Rotterdam - minus $ 56 (minus $ 57), minus $ 75 (minus $ 79) in Singapore and minus $ 64 (minus $ 74) in Fujairah. The most significant change of MABUX MBP/DBP Index was registered in Fujairah (down $ 10).
In general, the reduction of underestimation ratio for all types of fuel is associated with a sharp decline of spot bunker prices on the global market.
We expect global bunker prices may continue slight downward movement today: 380 HSFO: minus 2-4 USD/MT, VLSFO minus 3-5 USD/MT, MGO LS - minus 2-4 USD/MT.