MABUX: Bunker market this morning, Feb 09, 2021
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) showed firm upward evolution on February 8:
380 HSFO: USD/MT – 381.29 (+2.92)
VLSFO: USD/MT – 485.71 (+4.97)
MGO: USD/MT – 539.32 (+8.33)
As of February 8, a correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark (Digital Bunker Prices)) in four largest global hubs showed that 380 HSFO fuel remains moderately undervalued in all selected ports ranging from minus $ 4 (Singapore) to minus $ 12 (Houston) VLSFO fuel, on the contrary, was overvalued in all ports ranging from plus $ 5 (Houston) to plus $ 22 (Singapore). Over the past three months, the trend for a slight overvaluation of VLSFO has not changed. As for the MGO LS segment, according to DBP Index, the price in Houston has turned again back to the overcharging (plus $ 3). In all other selected ports, MGO LS remained moderately undervalued, ranging from minus $ 16 (Rotterdam) to minus $ 31 (Singapore).
World oil indexes rose on February 8, boosted by supply cuts among key producers and hopes for further U.S. economic stimulus measures that can boost demand.
Brent for April settlement rose by $1.22 to $60.56 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March delivery increased by $1.12 to $57.97 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.59 to WTI. Gasoil for February delivery added $6.00 – $493.50.
Today morning upward trend of oil indexes continues.
The oil market continues to tighten with deeper cuts from Saudi Arabia who pledged extra supply cuts in February and March on the back of reductions by other members of the Organization of the Petroleum Exporting Countries and its allies.
Meantime, markets are keeping a close watch on a $1.9 trillion COVID-19 aid package for the United States that is expected to be passed by lawmakers as soon as this month.
A weaker dollar against most currencies on February 8 also supported commodities, with dollar-denominated commodities becoming more affordable to holders of other currencies.
We expect IFO bunker prices may rise today by 5-7 USD while MGO prices may gain 6-10 USD globally.
