Global bunker prices declined this week as HSFO, VLSFO and MGO fell amid easing geopolitical tensions and stabilising energy markets.
Global bunker prices moved lower this week as the market continued a downward correction, supported by easing geopolitical tensions following the Middle East ceasefire.
Across fuel segments, prices declined steadily. HSFO dropped to USD 727.46/MT, while VLSFO fell to USD 848.10/MT. MGO LS recorded the sharpest decrease, slipping below USD 1,400 to USD 1,376.36/MT, remaining the most volatile grade.
The global scrubber spread between HSFO and VLSFO remained broadly stable, narrowing slightly but holding above the USD 100 breakeven level. Regionally, Rotterdam saw a widening spread, while Singapore recorded further narrowing.
ECA spreads showed mixed dynamics, with Istanbul declining but maintaining high intra-week volatility. Meanwhile, bunker demand in key hubs like Fujairah weakened significantly amid ongoing regional disruptions.
In the wider energy market, LNG prices continued to fall, improving its competitiveness against conventional fuels despite a narrowing spread. European gas storage rose modestly, while TTF prices trended lower, reflecting softer market sentiment.
Looking ahead, the bunker market may stabilise in the short term, but volatility is expected to persist due to geopolitical risks and shifting supply-demand dynamics.
Source: MABUX
