During the 47th week of the year, the Marine Bunker Exchange (MABUX) global indices showed no consistent trend, fluctuating irregularly.
The 380 HSFO index dropped by US$2.13 to US$518.49/MT, the VLSFO index declined by US$1.26 to US$597.00/MT, dipping below the US$600 mark, while, on the other hand, the MGO index saw an increase of US$3.90 to US$761.64/MT.
The MABUX Global Scrubber Spread (SS), representing the price difference between 380 HSFO and VLSFO, saw a slight increase of US$0.87 to US$78.51 but remained well below the breakeven point of US$100. The weekly average, however, fell by US$2.05. In Rotterdam, the SS Spread rose by US$8, from US$44 last week to US$52, with the weekly average up by US$2.67.
In Singapore, the price gap between 380 HSFO and VLSFO widened by US$1, from US$101 last week to US$102, with the index crossing the US$100 mark twice during the week. Nevertheless, the weekly average decreased by US$9.17.Overall, the SS Spread trend continues to contract, with values remaining near or below the US$100 threshold.
According to a statement, gas indices in the European Union (EU) are expected to remain stable through November, as high inventory levels help cushion against price swings. However, a forecasted cold snap may increase gas withdrawals, supporting prices amid strengthening winter demand. The competitiveness of the TTF index in the global LNG market will largely depend on regional price spreads, freight rates, and weather-driven demand shifts. As of November 18, European regional storage facilities were 90.30% full, a 2.74% decrease from the previous week. At the end of the 47th week, the European gas benchmark TTF continued to grow: plus 1.413 euros/MWh (45.668 euros/MWh versus 44.255 euros/MWh last week).
By the end of the week, LNG prices as a bunker fuel in the port of Sines, Portugal, continued their upward trend, rising by US$39 compared to the previous week to reach US$966/MT on 18 November. At the same time, the price gap between LNG and conventional fuel widened, with the difference favoring MGO LS increasing to US$235, up from US$195 the previous week. On 18 November, MGO LS was priced at US$731/MT in the port of Sines.
In Week 47 of 2024, the MABUX Market Differential Index (MDI), which compares market bunker prices (MABUX MBP Index) to the MABUX digital benchmark (MABUX DBP Index), showed the following trends across the four major global hubs—Rotterdam, Singapore, Fujairah, and Houston:
- 380 HSFO Segment: Rotterdam remained the only overvalued port, with its weekly average rising by 2 points. The other three ports stayed undervalued, with weekly averages dropping by 3 points in Fujairah and 6 points in Houston. Singapore’s index remained unchanged, while Houston’s MDI moved closer to achieving a 100% correlation between market prices and the digital benchmark.
- VLSFO Segment: Rotterdam and Houston were undervalued, with weekly averages decreasing by 7 and 15 points, respectively. Conversely, Singapore and Fujairah were overvalued, although their weekly averages fell by 6 points in Singapore and 3 points in Fujairah.
- MGO LS Segment: All four ports continued to be undervalued. Weekly averages increased by 5 points in Rotterdam, 14 points in Singapore, and 8 points in Fujairah, while Houston saw a decrease of 3 points. Notably, the MDI index in Singapore exceeded the US$100 threshold.
“The global bunker market is expected to continue showing mixed fluctuations with no
clear trend in the coming week. Geopolitical tensions could lead to momentary price
surges,” stated Sergey Ivanov, Director of MABUX.
