The Daily MABUX Bunker Index

Fuel demand slow recovery wakes bunker market

Fuel demand around the world is recovering as lockdowns ease, according to MABUX with the World Bunker Index showing an uptrend in June for all major types of bunker fuel.

Prices have risen fairly evenly, demonstrating a gradual recovery in demand on the global fuel market. The 380 HSFO index rose from US$254/tonne to US$288/tonne, VLSFO from US$295/tonne to US$342/tonne and MGO from US$371/tonne to US$415/tonne.

The spread between 380 HSFOs and VLSFOs (the so-called Scrubber Spread [SS])...

https://container-news.com/fuel-demand-slow-recovery-wakes-bunker-market/

Fuel markets show recovery signs amid fears of a second pandemic wave

Despite fears of a second wave of Covid-19, fuel markets rebounded last week, showing signs of improving fundamentals as global supplies continue to tighten.

MABUX Global Bunker Index for 380 HSFO rose slightly from US$283/mt on 18 June up to US$286/mt on 25 June, while VLSFO also saw a minor increase of US$4 (from US$337/mt to US$341/mt) and MGO LS presented an increase of US$8 (from US$411/mt to US$419/mt).

“Meanwhile, the pace of upward evolution has slowed somewhat and in the last two days we...

https://container-news.com/fuel-markets-show-recovery-signs-amid-fears-of-a-second-pandemic-wave/

A second coronavirus wave could demolish fuel prices

A feared second wave of coronavirus infections may have arrived, according to MABUX, with cases rising in many parts of the US, while exploding much more rapidly in Latin America. In China, a small number of new cases raised fears of a return of the virus.

“With much of the market pricing in a steady rebound in demand, any renewed lockdown or economic hit may drag fuel prices back down,” commented a MABUX spokesperson.

However, global bunker prices remained steady last week while a short decline...

https://container-news.com/a-second-coronavirus-wave-could-demolish-fuel-prices/

Narrow spreads stall scrubber retrofits

Last week bunker prices continued to rise slightly. MABUX Global Bunker Index for 380 HSFO rose from US$274/tonne on 4 June up to US$287/tonne today, 11 June (plus US$13), VLSFO – from US$314/tonne to US$335/tonne (plus US$21), MGO LS – from US$387/tonne to US$409/tonne (plus US$22).

Bunker indexes followed the general trend of the global oil market which was also on the rise as the Oil Producing and Exporting Countries (OPEC+) and other oil producers agreed to a one-month extension of its oil...

https://container-news.com/narrow-spreads-stall-scrubber-retrofits/

Index shows bunker prices steadily increasing

With crude oil prices steadily climbing in price after the April shocks the bunker fuel prices have, as expected, followed suit and have edged northwards again this week.

Bunker prices have continued to moderate upwards globally during the week. MABUX Global Bunker Index for 380 HSFO rose from US$254/tonne on 28 May up to US$274/tonne (plus US$20) on 4 June. Meanwhile, VLSFO edged higher from US$295/tonne to US$314/tonne (plus US$19) and MGO LS increased from US$371/tonne to US$385/tonne (plus...

https://container-news.com/index-shows-bunker-prices-steadily-increasing/

Testing group says VLSFO non-compliance declining

Veritas Petroleum Services (VPS) group commercial business development manager Steve Bee has said that the number of fuels that are non-compliant with the sulphur regulations is declining.

Speaking at a Ship & Bunker webinar this week Bee said that the number of fuels that were tested as having sulphur content higher than 0.5% in the period from March-April had fallen to 1.1% from 8% at the end of 2019.

Source: MABUX

Bee believes that the higher rate of failure could have been due to HFO residues...

https://container-news.com/testing-group-says-vlsfo-non-compliance-declining/

Sinopec sees increased bunker sales in China

Domestic very low sulphur fuel oil (VLSFO) production has seen growth in China leading to increased bunker sales by the leading supplier Sinopec at the country’s ports, according to S&P Global Platts.

Sinopec’s bunker sales at Chinese ports are close to 4.8 million tonnes/year, while the company increased its share of the China bunker market to 40%, of the 1 million tonnes/month traded at Chinese ports, reported Platts.

The Asian giant has applied a long-awaited rebate on value added tax on fuel...

https://container-news.com/sinopec-sees-increased-bunker-sales-in-china/

Lytton refinery shutdowns due to poor fuels demand

Caltex Australia has shutdown the Lytton refinery in Brisbane, according to Ship&Bunker. The Australian refinery will remain closed until market conditions improve. Caltex had announced, in April, that it will bring forward “planned maintenance at Lytton refinery”.

The significant fall in world fuel demand, caused by the Covid-19 crisis, led the Australian petroleum company to that important decision.

“Bringing forward our maintenance programme at the Lytton refinery in a planned way will protect...

https://container-news.com/lytton-refinery-shutdowns-due-to-poor-fuels-demand/

Oil price recovery sees accretion in bunker price

As recoveries go the oil price rises over the last week have almost gone unnoticed in the turmoil of the Coronavirus crisis.

Last year the IMO2020 low sulphur transition was to be the major issue for the maritime sector for the coming years, this year the price of oil plummeted in value, into negative territory at one point, and have made a recovery of sorts to around US$30/bbl for Brent Crude and around US$5/bbl below that for West Texas Crude.

Source MABUX.
Source MABUX.

Like a dutiful...

https://container-news.com/oil-price-recovery-sees-accretion-in-bunker-price/

VLSFO price hits record low

The cost of VLSFO bunkers in the four main bunkering hubs of Singapore, Fujairah, Rotterdam, and Houston has continued to fall, hitting a record low on Tuesday US$180/tonne, according to Ship & Bunker’s Global 4 Ports (G4) index.

This is the lowest level of bunker costs since April 2019, when the G4 index for IFO380 was US$179/tonne.

The courtesy of MABUX

The current global level of VLSFO is US$230/tonne with the largest decline of US$22.5/tonne in Central America and the biggest gain of...

https://container-news.com/vlsfo-price-hits-record-low/

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