MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) trended lower on July 25, (the sixth day in a row):
380 HSFO – USD/MT – 615.68 (-11.03)
VLSFO – USD/MT – 911.70 (-14.67)
MGO – USD/MT – 1 203.57 (-6.36)
As of July 25, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices and the MABUX digital bunker price benchmark) showed irregular fluctuations in the HSFO and MGO LS segments. Fuel 380 HSFO, according to MDI, was undervalued in three ports out of four selected: Houston remained the only port with fuel overcharged: plus $13 versus plus $8 the day before. In other ports, the underepricing was registered as: Rotterdam – minus $114 (vs. minus $107 a day earlier), Singapore – minus $139 (minus $148) and Fujairah – minus $124 (minus $119). The MDI index did not have firm dynamics here: in Houston, the overcharge rose slightyly, in Singapore, the underpricing premium decreased, and in Rotterdam and Fujairah, it slightly increased.
VLSFO fuel grade, according to the MDI index, remained overvalued on July 25 in all four ports selected: Rotterdam – plus $ 31 (plus $ 33 the day before), Singapore – plus $ 135 (plus $ 175), Fujairah – plus $ 176 (plus $ 198) and Houston – plus $98 (plus $88). Thus, in the VLSFO segment, the overcharge premium fell in Rotterdam, Singapore and Fujairah, but rose in Houston.
In the MGO LS segment, the port of Rotterdam continued irregular fluctuations on July 25, returning back to the fuel underestimation zone: minus $26 versus plus $25 a day earlier. Singapore also remained underestimated: minus $91 (minus $21). In Fujairah and Houston, the MDI index registered fuel overpricing by plus $182 (plus $264) and plus $77 (plus $61), respectively. There was no single trend of the MDI index here as well: in Rotterdam and Singapore, the undervaluation premium rose, in Fujairah the overcharge decreased, and in Houston, on the contrary, it increased. The most significant change was 70 points increase of undercharge premium in Rotterdam and a reduction of overprice ratio in Fujairah by 82 points.
We expect irregular fluctuations with no firm trend to continue in Global bunker market today: 380 HSFO – plus 7-10 USD / MT, VLSFO – plus 8-14 USD / MT, MGO LS – plus-minus 8-15 USD/MT.
Source: Mabux.com