Global bunker prices remain volatile as Middle East tensions persist

Global bunker prices remained volatile during Week 20 as mixed movements continued across the marine fuel market amid ongoing geopolitical uncertainty in the Middle East. HSFO prices edged lower during the week, while VLSFO recorded moderate gains and MGO LS declined slightly as bunker markets entered a phase of relative stabilisation.

The MABUX 380 HSFO index fell to USD 776.65/MT, while the VLSFO index increased to USD 943.89/MT. MGO LS prices declined to USD 1,404.00/MT by the end of the week. The global scrubber spread widened to USD 167.24, remaining well above the USD 100 breakeven threshold and continuing to support the economic attractiveness of scrubber-equipped vessels. Rotterdam’s spread dropped below USD 100, while Singapore’s spread remained relatively stable.

Regional market dynamics were also influenced by tightening LNG supply conditions following disruptions in the Strait of Hormuz. According to the IEA, LNG availability has already fallen by around 15%, while Europe faces additional pressure to refill gas storage ahead of winter. LNG bunker prices at the port of Sines declined during the week, narrowing the price gap with conventional fuels.

Fuel quality concerns also resurfaced in major bunkering hubs including Singapore and Houston, with reports of increased contamination risks in HSFO blends.

The bunker market is expected to remain highly sensitive to geopolitical developments and supply disruptions next week, with continued volatility likely across all major fuel segments.

Source: MABUX