Global bunker prices fall as peace hopes weigh on fuel markets

Global bunker prices moved lower this week as reports of a possible US-Iran peace agreement pressured bunker fuel markets, although volatility remained high amid uncertainty around the Middle East conflict.

The MABUX 380 HSFO index fell by USD 41.82 to USD 748.07/MT, while VLSFO dropped by USD 63.13 to USD 884.26/MT, moving below the USD 900 mark. MGO LS also declined sharply, losing USD 80.94 to USD 1,324.02/MT and approaching the USD 1,300 level.

The Global Scrubber Spread continued to narrow, falling from USD 157.50 to USD 136.19, though it stayed above the USD 100 breakeven threshold. Rotterdam moved higher, while Singapore’s HSFO/VLSFO spread widened slightly.

ECA spread movements were limited, with Istanbul unchanged at USD 50.00 and Venice remaining uncalculated due to missing regular quotations.

Energy markets were shaped by LNG and gas developments. European gas storage rose to 38.52%, while the TTF benchmark declined. LNG bunker fuel in Sines also fell, widening its price advantage over MGO LS.

MABUX expects mixed movements in global bunker indices to continue in the near term as geopolitical tensions, ceasefire uncertainty and market volatility remain key drivers.

Source: MABUX