Bunker Weekly Outlook, Week 51

On a Week 51, the MABUX World Bunker Index continued to demonstrate minor multidirectional changes. The 380 HSFO Index rose by 2.56 USD: from 473.94 USD / MT to 476.50 USD / MT. The VLSFO index fell by 3.87 USD: from 610.38 USD / MT to 606.51 USD / MT, while the MGO index decreased by 3.72 USD (from 726.14 USD / MT to 722.42 USD / MT). Currently, there is some stabilization in the global bunker market after price indexes decline from October highs (380 HSFO – 541.98 USD / MT dd. 18.10; VLSFO – 657.89 USD / MT dd. 26.10; and MGO LS – 779.20 USD / MT dd. 27.10).

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The weekly average Global Scrubber Spread (SS) – the difference in price between 380 HSFO and VLSFO – showed a moderate decline by $ 4.43 ($ 132.72 versus $ 137.15 last week). At the same time, the most significant reduction of SS Spread was recorded in Rotterdam: from $ 133.83 to $ 126.00 (minus $ 7.83 compared to the previous week). In addition, on December 22, the SS Spread Index in Rotterdam dropped to $ 115.00. The average weekly SS Spread in Singapore was more stable: decline by $ 3.50 to $ 175.00 versus $ 178.50 last week. SS Spread is still above the $ 100 psychological mark. More information is available in the Differentials section of the website www.mabux.com.

On a Week 51, the MABUX MBP Index (Market Bunker Prices) vs. MABUX DBP Index (MABUX Digital Bunker Benchmark) correlation did not register any significant changes in all four world’s largest hubs. In particular, 380 HSFO fuel remained undervalued in two out of four ports selected: in Singapore – minus $ 6 and in Fujairah – minus $ 3. In Rotterdam and Houston, the MABUX MBP / DBP Index recorded an overcharge by $ 8 and $ 5, respectively. The 380 HSFO MBP / DBP Index is still close to the 100% correlation mark.

VLSFO fuel grade, according to the MABUX MBP / DBP Index, remained significantly overpriced at all selected ports: plus $ 24 in Rotterdam, plus $ 63 in Singapore, plus $ 63 in Fujairah and plus $ 26 in Houston.

As for MGO LS, the MABUX MBP / DBP Index recorded an underestimation of this fuel grade in three of the four selected ports: in Rotterdam by minus $ 32, in Singapore by minus $ 13 and in Houston by minus $ 9. Only in Fujairah, according to MABUX MBP / DBP Index, MGO LS was overpriced by $ 55.

As per Poseidon Principles Annual Disclosure Report 2021 show, 11 out of 23 ship finance portfolios are aligned with the International Maritime Organization’s (IMO) decarbonisation target, While the figure is up on last year’s total, when only three out of 12 ship finance portfolios were aligned with UN decarbonisation targets, on average, the 23 signatories were 7% above the climate target compared with 1.2% a year previously. established in June 2019, the Poseidon Principles became the first sector-specific climate alignment agreement for financial institutions. There are currently 29 Signatories of the Poseidon Principles, jointly representing approximately $185 billion in shipping finance.

Source: www.mabux.com