MABUX: Expectations for global bunker indices to continue slight downward
“Global bunker indices continued moderate decline over Week 29,” said Sergey Ivanov, director of Marine Bunker Exchange (MABUX). The 380 HSFO index decreased slightly to US$641.59/mt, the VLSFO index fell to US$966.67/mt and the MGO index dropped to US$1,250.62/mt.
Following a further decline in fuel prices, the Global Scrubber Spread (SS) weekly average – the difference in price between 380 HSFO and VLSFO – also continued its slight downtrend for the second week in a row. Additionally, the SS Spread average decreased both in Singapore and Rotterdam.
Natural gas prices in Europe declined slightly over week 29. LNG as bunker fuel in the port of Sines (Portugal) fell by US$797/mt on 18 July to US$2,583/mt. LNG prices are still significantly higher than those of traditional bunker fuels: the price of MGO LS at the port of Sines was quoted on 20 July at US$1,336 /mt.
Over Week 29, the MDI index (comparison of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark)) continued to demonstrate an undercharge of 380 HSFO fuel in all four ports selected: Rotterdam – minus US$108, Singapore – minus US$141, Fujairah – minus US$112 and Houston – minus US$19. The underestimation premium of HSFO fuel in all ports continues to widen.
“We expect global bunker indices to continue slight downward trend next week,” Ivanov concluded.