During the 49th week of the year, the Marine Bunker Exchange (MABUX) global indices showed no definitive trend.
The 380 HSFO index rose by US$4.76 to US$518.76/MT, the VLSFO index declined by US$2.34 to US$592.42/MT, staying below the US$600 threshold, while the MGO index also decreased by US$7.12 to US$755.69/MT.
The MABUX Global Scrubber Spread (SS), which measures the price difference between 380 HSFO and VLSFO, fell by US$7.10 to US$73.66 and remained well below the breakeven mark of US$100. The weekly average of the SS index also dipped by US$2.73.
Rotterdam saw the steepest SS Spread decline, down by US$16 to US$42.00, with the weekly average decreasing by US$4.67. In Singapore, the 380 HSFO/VLSFO spread narrowed by US$11 to US$83, and the weekly average fell by US$16.83.
Overall, the ongoing downward trend in the SS Spread continues to diminish the cost advantage of the 380 HSFO combined with a scrubber setup, shifting the preference towards conventional VLSFO 0.5% sulfur fuel.
According to MABUX report, the price of liquefied natural gas (LNG) in Asia could exceed $20 per million British thermal units (MMBtu) this winter as European supplies tighten, Goldman Sachs reports. Europe’s Title Transfer Facility (TTF) gas benchmark has reached its highest level in two years, driven by rising heating demand amid colder winter temperatures.
In response, LNG traders are redirecting cargoes from Asia to Europe, which offers higher premiums. At least 11 shipments have been rerouted in recent weeks. As of December 02, European regional storage facilities were 84.65% full (down 3.65% from last week), and gas extraction continues. At the end of the 49th week, the European gas benchmark TTF continued to grow plus 1.341 euro/MWh (48.557 euro/MWh versus 47.216 euro/MWh last week).
The price of LNG as a bunker fuel in the port of Sines (Portugal) decreased by US$20 by the end of the week, settling at US$1008/MT on 2 December. Despite this drop, it remained above the US$1000/MT mark. At the same time, the price gap between LNG and conventional fuels also narrowed. On 2 December, the price difference was US$270 in favour of MGO LS, down from US$287 the previous week. MGO LS was priced at US$738/MT in Sines on the same day.
During Week 49, the MABUX Market Differential Index (MDI), which measures the ratio of market bunker prices (MBP Index) to the MABUX digital bunker benchmark (DBP Index), showed underpricing across all major hubs (Rotterdam, Singapore, Fujairah, and Houston) for all types of bunker fuel:
- 380 HSFO segment: Weekly underpricing averages decreased by 4 points in Rotterdam, 6 in Singapore, 1 in Fujairah, and 7 in Houston. The MDI values in Rotterdam and Houston approached near-perfect alignment between market prices and the MABUX digital benchmark.
- VLSFO segment: Weekly underpricing increased by 1 point in Rotterdam, 9 in Singapore, and 4 in Fujairah, while dropping by 6 points in Houston. Singapore and Fujairah reached near-full MBP/DBP correlation.
- MGO LS segment: Weekly undervaluation widened by 1 point in Rotterdam but narrowed by 4 points in Singapore, 11 in Fujairah, and 12 in Houston. The MDI index in Rotterdam and Singapore remained close to 100%.
“The global bunker market remains devoid of definitive movers. Irregular fluctuations
across indices are expected to persist next week,” commented Sergey Ivanov, Director of MABUX.
