English
2024/04/25
During the fourteenth week of the year, a discernible ascent characterized the Marine Bunker Exchange (MABUX) global bunker indices.
The 380 HSFO index witnessed an uptick of US$6.91, reaching US$553.09/MT. Meanwhile, the VLSFO index surged by US$8.49 to a level of US$696.13/MT. Furthermore, the MGO index recorded a notable increase of US$10.14, crossing the US$900 threshold to settle at US$901.39/MT.
"As of the time of composition, the upward trajectory in the global bunker market persists," remarked a spokesperson from MABUX.
The MABUX Global Scrubber Spread (SS), delineating the disparity in prices between 380 HSFO and VLSFO, underwent a modest augmentation of US$1.58, attaining US$143.04.
However, the weekly mean experienced a marginal decrement of US$0.17. Notably, in Rotterdam, the SS Spread widened by US$3, reaching US$113, hovering in close proximity to the US$100 threshold (SS Breakeven).
Conversely, the average weekly value in the port diminished by US$5. Meanwhile, in Singapore, the 380 HSFO/VLSFO price gap widened by US$6 to US$158.00, accompanied by a slight weekly average elevation of US$0.50. It is prognosticated that the forthcoming week may showcase fluctuating trends in the dynamics of the SS Spread.
Europe is poised to conclude the winter heating season with an unprecedented surplus in natural gas inventories, offering a significant cushion against potential price spikes and energy crises in the upcoming winter. As of 25th March, just one week before the major gas withdrawal season's end on 31st March, European Union gas storage facilities were operating at 59% capacity.
Although this capacity accounts for only about a quarter of the EU's winter consumption, the substantial stocks at the onset of the refill season in April are expected to facilitate Europe's aim of achieving 90% capacity by 1st November.
However, apprehensions loom over the future of Russian pipeline supply via Ukraine, given the looming expiration of the multi-year transit agreement on 31st December. Both Ukraine and the EU have signaled their reluctance to extend this transit agreement, raising specific concerns for certain central European EU members, including Austria and Slovakia, regarding their gas supply security.
On 3rd April, the price of LNG as bunker fuel in the port of Sines, Portugal, decreased to US$643/MT, marking a decline of US$15 compared to the previous week.
Simultaneously, the price gap between LNG and conventional fuel on April 3rd widened to US$263 in favor of LNG, compared to US$242 the previous week. On the same day, MGO LS was priced at US$906/MT in the port of Sines.
During Week 14, the MDI index, which juxtaposes market bunker prices (MABUX MBP Index) with the MABUX digital bunker benchmark (MABUX DBP Index), delineated the following trends across four selected ports: Rotterdam, Singapore, Fujairah, and Houston:
In the 380 HSFO segment, all four selected ports resided within the undercharge zone. Weekly average differentials witnessed increments of 7 points in Rotterdam, 10 points in Singapore, 1 point in Fujairah, and 14 points in Houston. The MDI index in Fujairah remained marginally above US$100.
Regarding the VLSFO segment, based on MDI, all ports transitioned into the underprice zone, with the average weekly differential escalating by 15 points in Rotterdam, 13 points in Singapore, 16 points in Fujairah, and 21 points in Houston.
In the MGO LS segment, only Houston was deemed overvalued, experiencing a 2-point weekly average differential decline. The other three ports persisted as undervalued. Weekly average disparities augmented by 4 points in Rotterdam, 1 point in Singapore, and 5 points in Fujairah. MDI indices in Rotterdam and Singapore continued to surpass the US$100 benchmark.
Throughout the week, a notable shift towards underpricing emerged in the VLSFO segment. Concurrently, the balance between undervalued and overvalued ports in the 380 HSFO and MGO LS categories remained stable.
"We anticipate the global bunker market to sustain its potential for gradual expansion in the upcoming week," remarked Sergey Ivanov, Director of MABUX.
