MABUX: Bunker Weekly Outlook, Week 21, 2021

The Weekly Outlook was contributed by Marine Bunker Exchange (MABUX)

During Week 21, MABUX World Bunker Index has returned to a phase of moderate upward evolution. 380 HSFO Index increased by 8.37 USD: from 416.01 USD/MT to 424.38 USD/MT, VLSFO Index rose by 7.82 USD: from 514.85 USD/MT to 522.67 USD/MT, while MGO index added $ 6.83 (from 610.52 USD/MT to 617.35 USD/MT).

MABUX ARA LNG Bunker Index – the average price of LNG as a marine fuel in the ARA region, fell by 6.98 USD from 607.67 USD/MT last week to 600.69 USD / MT now. At the same time, the average LNG Bunker Index rose by 6.74 USD. MGO LS prices for the same period rose by 9 USD / MT. Since May 6, the price of LNG as bunker fuel in Rotterdam has consistently exceeded the price of MGO LS by average 55-65 USD. LNG bunker price indices, TTF, NBP and Henry Hub gas futures, LNG bunker market news and more are available in the new LNG Bunkering section at www.mabux.com.

The average Global Scrubber Spread (SS) – the difference in price between 380 HSFO and VLSFO – fell slightly to $ 98.45 (versus $ 99.86 last week, minus $ 1.41). At the same time, SS Spread in Rotterdam has not changed during the week and remained at $ 109.00, however, its weekly average slightly decreased by $ 0.16 to $ 108.17 ($ 108.33 last week). In Singapore, the SS Spread fell by $ 1.00, while its weekly average decreased by $ 3.00 to $ 109.50 USD ($ 112.50 last week). Thus, the average weekly SS Spread in both ports have become almost equal and are still above the psychological mark of $ 100. More information is available in the Differentials section at www.mabux.com.

Correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (MABUX Digital Benchmark) in the four global largest hubs showed this week that 380 HSFO fuel remained undervalued in all four selected ports ranging from minus $ 7 in Houston (versus minus $ 5 last week) and minus $ 21 in Fujairah (vs. minus $ 24) to minus $ 42 in Rotterdam (vs. minus $ 37) and minus $ 53 in Singapore (vs. minus $ 48). The underestimation margins in all four ports have not changed significantly.

The underestimation trend of VLSFO, according to MABUX DBP Index, changed irregular this week in three of four selected ports: in Rotterdam, the registered underpricing was minus $ 26 (vs. minus $ 21 last week), in Fujairah – minus $ 38 (vs. minus $ 44), in Singapore – minus $ 50 (versus minus $ 45). Meantime, only in Houston DBP Index registers VLSFO overcharge: plus $ 7 (versus plus $ 10 last week).

As for MGO LS, MABUX DBP Index registered an undercharge of this grade at all selected ports ranging from minus $ 23 (versus minus $ 24 last week) in Houston to minus $ 50 (minus $ 43) in Rotterdam, minus $ 48 (minus $ 50) in Singapore and minus $ 54 USD (versus minus $ 58) in Fujairah. Overall, the MBP/DBP Index margins have remained stable during the week and have not shown significant changes.

Eurotank Amsterdam, part of VTTI, is to convert its gasoil tanks to hold biofuels, mixed biofuels and hydrotreated vegetable oil (HVO). The move follows a successful pilot project and the company says it is a key step in realising its ambition to offer storage for renewable energy at the Port of Amsterdam. Over 75,000 cubic metres of storage capacity will be made ready for biofuels and the first phase of the projects will be commissioned at the end of the year. ETA is also developing the infrastructure for biofuels. The jetties and loading arms will be upgraded this year and a new truck loading station will be built.

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Tags: MABUX, bunker fuel prices, weekly outlook