Global bunker prices surged in Week 10 as geopolitical tensions in the Middle East triggered sharp gains across marine fuel markets.
The 380 HSFO index jumped above $560/MT, VLSFO climbed past $650/MT and MGO LS exceeded $1,000/MT for the first time since October 2023, reflecting strong volatility across the fuel complex.
The global scrubber spread narrowed slightly to around $92 but remained close to the $100 breakeven threshold for scrubber economics. Singapore saw a notable widening toward $95, while Rotterdam remained stable near $50.
Despite the recent movements, VLSFO continues to maintain a competitive advantage over HSFO combined with scrubber use.
ECA spreads showed mixed dynamics. Istanbul recorded a sharp increase to about $225 as diesel prices surged across the regional market, while Venice remained broadly stable near $90.
European gas storage levels continued to fall, reaching roughly 30% of capacity, significantly below levels at the start of the year. At the same time, the TTF benchmark surged above €54/MWh amid heightened concerns over energy supply following escalating Middle East tensions.
LNG bunker prices in Sines eased slightly to around $774/MT, while the price gap with conventional marine fuels widened in favour of LNG as MGO LS prices increased sharply.
Across major bunkering hubs, the MABUX Market Differential Index indicated growing overvaluation in HSFO and VLSFO segments following the rapid rise in bunker prices, while MGO LS remained undervalued across most ports.
With geopolitical risks continuing to dominate energy markets, bunker prices are expected to remain volatile in the near term.
Source: MABUX
