MABUX: Bunker Market Continues its Increased Volatility

There remains to be no agency development within the world bunker market amid the continued navy battle in Ukraine. Over the Week 14, the MABUX Bunker Index confirmed slight irregular adjustments. The 380 HSFO index fell by 9.15 USD: from 726.25 USD/MT to 717.10 USD/MT. The VLSFO index rose by 1.46 USD: from 943.06 USD/MT to 944.52 USD/MT. The MGO index added a symbolic 0.11 USD (from 1158.58 USD/MT to 1158.69 USD/MT).

The Global Scrubber Spread (SS) weekly common – the distinction between 380 HSFO and VLSFO – remained nearly unchanged over the week, displaying a rise of $ 0.67 ($ 222.13 vs. $ 221.46 final week). In Rotterdam, the typical SS Spread dropped from $209.33 to $207.67 (down $1.66 from final week). However, essentially the most important decline was recorded in Singapore: minus $29.67 from $209.67 to $180.00. SS Spread on this port continues plunging for the second week in a row, reaching $ 160 on April 06 (versus $ 223 on March 24).

More data is out there within the Price Differences part of

Over the Week 14, the typical correlation of MABUX MBP Index (market bunker costs) vs MABUX DBP Index (MABUX digital bunker benchmark) confirmed that the gasoline overpricing development prevailed within the world bunker market amid excessive volatility. Thus, 380 HSFO gasoline remained overvalued in all 4 chosen ports, whereas overcharge ratio elevated considerably: in Rotterdam – plus $ 63 (plus $ 27 final week), in Singapore – plus $ 48 (plus $ 2), in Fujairah – plus $51 (plus $3) and in Houston – plus $68 (no change). The most vital was overprice development in Fujairah by 48 factors.

VLSFO gasoline grade, in keeping with the MABUX MBP/DBP Index, additionally remained overpriced on common in all chosen ports: plus $101 (plus $50) in Rotterdam, plus $42 (plus $8) in Singapore, plus $68 (plus $40) in Fujairah and plus $106 (plus $81) in Houston. In all chosen ports, there’s a agency development in direction of a major rise within the VLSFO’s overprice ratio.

As for MGO LS, MABUX MBP/DBP Index registered an underpricing of this gasoline grade solely in a single out of 4 ports chosen: Singapore – minus $8 (minus $88). All different three ports demonstrated an overcharge: Rotterdam – plus $24 (minus $6), Fujairah – plus $87 (plus $25) and Houston – plus $107 (plus $46). In this gasoline phase, there may be registered a change in development and a gradual transition to the overprice zone.

The Getting to Zero Coalition highlights a rise within the variety of initiatives since its second mapping report final March – up from 106 to 203 – with a deal with ship applied sciences, gasoline manufacturing, bunkering and infrastructure. Some key takeaways from this 12 months’s report embody extra deal with hydrogen-derived fuels, extra giant vessels concentrating on ammonia and methanol, a rise in bunkering and infrastructure initiatives, and the emergence of gasoline manufacturing in Oceania. The report additionally highlights a rise within the variety of hydrogen – together with inexperienced hydrogen – and ammonia manufacturing initiatives since 2021 (42 of the gasoline manufacturing initiatives are involving so-called “Green Hydrogen” primarily based on electrolysis). Some 114 initiatives within the report have a connection to Europe. However, the brand new report additionally identifies 60 Asian initiatives, up from 31 within the second version.

VPS has recognized 34 vessels which obtained excessive sulphur gasoline oil (HSFO) contaminated with chlorinated hydrocarbons from two Singapore suppliers between February and March – over 14 vessels up to now have suffered gasoline system issues. VPS first issued an alert over the contamination on 11 March, noting that the bunker samples had been contaminated with as much as 2,000 ppm of chlorinated hydrocarbons. The impression on the affected vessels was a failure of the gasoline system to the auxiliary engine leading to lack of energy and propulsion making a blackout. The gasoline system failure arose from seizure of the gasoline pumps and plunger and barrel corrosion, brought on by the bunker gasoline contaminants. VPS warned that the issues ‘seem like persevering with to have an effect on an rising variety of vessels.’

The navy battle in Ukraine and geopolitical tensions stay the primary causes for the excessive volatility within the world bunker market. We anticipate sharp irregular fluctuations in bunker costs to proceed subsequent week.
Source: By Sergey Ivanov, Director, MABUX

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