MABUX: Bunker market this morning, Dec.23, 2020
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose slightly on Dec.22:
380 HSFO – USD/MT – 337.64 (-1.92)
VLSFO – USD/MT – 418.00 (-2.00)
MGO – USD/MT – 482.07 (-1.51)
Correlation of the MBP Index (Market Bunker Prices) vs the DBP Index (Digital Bunker Prices) in four largest hubs showed on Dec.22, that 380 HSFO was still undervalued in Rotterdam by 9 USD and in Singapore by 5 USD, while remaining overpriced in Fujairah and Houston (plus 4 USD and 16 USD, respectively). VLSFO fuel remains moderately overpriced in all selected ports except of Singapore, where VLSFO was undervalued by 5 USD. MGO LS, in turn, was undervalued in all ports ranging from minus 17 USD to minus 40 USD, with the exception of Houston (was overcharged by 23 USD).
MABUX: Bunker market this morning, Dec.21, 2020
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose slightly on Dec.18:
380 HSFO – USD/MT – 341.46 (+0.67)
VLSFO – USD/MT – 421.00 (+1.00)
MGO – USD/MT – 487.63 (+2.18)
Correlation of the MBP Index (Market Bunker Prices) vs the DBP Index (Digital Bunker Prices) in four largest hubs showed on Dec.18, that 380 HSFO was still undervalued in Rotterdam by 8 USD while remaining overpriced in Singapore, Fujairah and Houston (plus 2 USD, 8 USD and 22 USD, respectively). VLSFO fuel remains moderately overpriced in all selected ports except of Singapore, where VLSFO was undervalued by 4 USD. MGO LS, in turn, was undervalued in all ports ranging from minus 17 USD to minus 46 USD, with the exception of Houston (was overcharged by 8 USD).
MABUX: Bunker Market Facing More Uncertainty Despite Recent Upwards Trajectory
Despite the recent rally of benchmark oil prices and bunker indexes on vaccine rollout news, demand recovery is still uncertain as covid-19 infection rates continued to rise sharply in the U.S. and Europe. Many countries are considering more strict restrictions over the Christmas holidays, which may reduce fuel demand in the near-term outlook.
The World Bunker Index MABUX continued firm upward evolution over a week. The 380 HSFO index rose from 330.49 USD/MT to 338.99 USD/ MT (+8.50 USD), VLSFO gained 13.00 USD: from 406.00 USD/MT to 419.00 USD/MT while MGO added 14.37 USD and changed from 467.62 USD/MT up to 481.99 USD/MT. The Global Scrubber Spread (SS) (price difference between 380 HSFOs and VLSFOs) has also demonstrated widening trend: it has risen by 6.68 USD and averaged USD 78.32 (71.64 USD a week ago). The growing price differential between 380 HSFO and VLSFO makes scrubbers more attractive again