Global bunker prices ease as Middle East ceasefire triggers market correction

Global bunker prices moved lower this week as the bunker market entered a phase of temporary stabilisation following the April 8 ceasefire announcement in the Middle East. The correction was moderate overall, but all three main fuel segments ended the week lower.

380 HSFO fell by USD 14.86 to USD 756.72/MT, while VLSFO dropped by USD 25.10 to USD 876.33/MT, slipping below the USD 900 mark. MGO LS recorded the sharpest decline, falling by USD 68.97 to USD 1,456.67/MT and remaining the most volatile segment of the global bunker market.

The MABUX Global Scrubber Spread narrowed by USD 10.24 to USD 119.61, falling below USD 120 but remaining above the USD 100 breakeven level. Rotterdam’s spread declined to USD 27, while Singapore saw a much sharper fall to USD 70. MABUX expects the spread to continue moving lower next week.

In regional dynamics, the Istanbul ECA spread ended the week unchanged at USD 100, although intraweek volatility remained high. Meanwhile, European gas prices softened, with TTF dropping below EUR 50/MWh, even as supply-side risks linked to LNG flows and storage levels continue to hang over the market. LNG bunker prices at Sines also declined, narrowing LNG’s price advantage over conventional marine fuel.

The near-term outlook remains cautious. MABUX expects the current downward trend in bunker prices to continue into next week, but the market is still likely to remain volatile and highly sensitive to geopolitical developments.

Source: MABUX