Bunker fuel prices have risen significantly over the ninth week of the year as the Russia-Ukraine conflict intensifies, making the market highly volatile.
Particularly, the 380 high-sulphur fuel oil (HSFO) Index rose to US$660.49/MT, and the very low sulphur fuel oil (VLSFO) index jumped to US$860.16/MT, while the marine gas oil (MGO) index showed the most significant growth to US$986.17/MT.
The Global Scrubber Spread (SS) weekly average, the difference in price between 380 HSFO and VLSFO, also showed a sharp increase over the week to US$175.91.
Meantime, in Rotterdam, the SS Spread weekly average increased to US$177 and added 42 points in an absolute value. In Singapore, the weekly average rose to US$222.50, with 47 points added in absolute value.
Gas prices in Europe have soared amid confrontation in Ukraine, and suppliers are not able to indicate LNG as a bunker fuel at the moment, according to Marine Bunker Exchange (MABUX) analysts.
The average correlation of MABUX market bunker prices (MBP) Index vs MABUX digital bunker benchmark (DBP) Index over the ninth week showed that 380 HSFO fuel-grade remained overpriced in two out of four ports selected: in Rotterdam, with plus US$3 and in Houston, plus US$39.
In Singapore and Fujairah, the MABUX MBP/DBP Index registered an underpricing of US$22 and US$9, respectively. “The persisting volatility in the market prevents the formation of a sustainable trend,” explained a MABUX official.
VLSFO fuel grade, according to the MABUX MBP/DBP Index, remains on average overpriced at all selected ports: plus US$24 in Rotterdam, plus US$35 in Singapore, plus US$65 in Fujairah and plus US$38 in Houston.
The most significant change over the week was the reduction of the VLSFO overprice ratio at the port of Houston by 27 points, according to MABUX data.
As for MGO LS, the MABUX MBP/DBP Index registered an underestimation of this fuel grade in two out of four selected ports: in Rotterdam by minus US$10 and in Singapore by minus US$15. In Fujairah and Houston, the MGO LS overcharged by US$28 and US$80, respectively, while in Houston the overpricing premium rose by 33 points at once.
