MABUX reports firm rise in fuel prices
The Marine Bunker Exchange (MABUX) World Bunker Index has continued its strong upward trend on week 3, with the 380 HSFO Index rising to US$543.89/MT, VLSFO Index to US$693.93/MT, and MGO Index also growing to US$816.89/MT.
All three fuel indexes topped October 2021 highs, while 380 HSFO reached US$542.16/MT, VLSFO completed US$657.89/MT and MGO LS US$779.20/MT on 20, 26 and 10 October, respectively.
The weekly average Global Scrubber Spread (SS), showing the difference in price between 380 HSFO and VLSFO, increased to US$143.96.
SS Spread in Rotterdam widened to US$142.33, while the average weekly SS Spread in Singapore rose to US$194. The SS Spread is above US$100, which is the psychological mark at the largest hubs and continues to rise.
So far this month, the European Union has received US natural gas volumes, five times higher than Russia’s pipeline deliveries.
“Despite this, even with normal winter weather conditions, Europe faces storage inventories dropping to a record low of below 15 billion cubic meters (bcm) by the end of March,” noted MABUX officials.
The price of LNG as a marine fuel at the port of Sines in Portugal decreased further to US$2,315/MT on 17 January. “The price of LNG still significantly exceeds the price of MGO LS of US$807/MT as of 19 January,” they added.
Furthermore, on week 3, the correlation of the MABUX Market Bunker Prices (MBP) Index vs the MABUX Digital Bunker Prices (DBP) Index showed that 380 HSFO fuel grade was overpriced at two ports out of four selected, versus three out of four selected last week.
In Rotterdam, it was plus US$5 and in Houston plus US$23. In Singapore and Fujairah, the MABUX MBP/DBP Index registered an underestimation of 380 HSFO by US$14 and US$5, respectively.
At the moment, the Index does not have a single trend in the global 380 HSFO market segment, according to MABUX analysts.
VLSFO fuel grade, according to the MABUX MBP / DBP Index, remained overvalued in three ports out of four selected against two last week. Only Houston moved into the undercharge zone, with a minus of US$5.
For other ports, the overcharge was registered as: plus US$18 in Rotterdam, plus US$49 in Singapore and plus US$47 in Fujairah.
As for MGO LS, the MABUX MBP/DBP Index recorded an underestimation of this type of fuel in three of the four selected ports: In Fujairah a minus US$4, Rotterdam recorded a minus US$18 and Singapore a minus US$19.
The only port where the MABUX MBP/DBP Index recorded an overpricing this time was Houston with plus US$8, according to MABUX.
A new study from Transport & Environment (T&E) has found that more than 25 million tonnes of CO2 emissions would be exempt from the European Union’s Emission Trading Scheme (ETS).
As per the report, ‘arbitrary’ exemptions of ships such as those servicing oil and gas facilities, will “undermine the EU’s shipping law and let millions of tonnes of emissions off the hook.”
Last July the European Commission (EC) announced that the ETS would apply to all shipping emissions from vessels calling at an EU port on intra-EU voyages as well as 50% of emissions from extra-EU voyages and emissions while at berth in EU ports.