During the 18th week, the MABUX global bunker indices remained relatively stable, lacking a clear directional movement. The 380 HSFO index experienced a modest increase of US$7.20 to US$557.55/MT compared to the previous week.
Conversely, the VLSFO index continued its downward trend, decreasing by US$6.51 to US$687.76/MT. Similarly, the MGO index saw a decline of US$5.28 to US$870.80/MT.
"At the time of writing, world bunker indices were in a moderate decline trend," explained a MABUX spokesperson.
The MABUX Global Scrubber Spread (SS), representing the price variance between 380 HSFO and VLSFO, continued its decline, now standing at minus US$13.71. The weekly average also saw a decrease of US$7.99. In Rotterdam, the SS Spread diminished by US$8.00, approaching the US$100.00 threshold (SS Breakeven). The weekly average for the port also dropped by US$11.50. Singapore witnessed the most notable reduction in the 380 HSFO/VLSFO price gap, declining by US$21.00, with the weekly average decreasing by US$11.50.
"We expect next week the SS Spread dynamics to continue downward trend," stated a MABUX official.
Natural gas prices have returned to their 10-year range, reflecting sustained high inventory levels and decreased demand. It's expected that European LNG demand will reach its peak in 2024, primarily due to reductions in structural gas demand driven by the EU's ambitious decarbonization goals. The ongoing development of 19 global liquefaction projects is set to increase LNG production by around 200 million tonnes by 2030, which is half of the current annual trade volume. Notably, approximately 75% of the LNG import capacity added in the EU since 2022 consists of Floating Storage and Regasification Units (FSRUs).
In the port of Sines (Portugal), the price of LNG as bunker fuel decreased to US$745/MT on 29 April, marking a US$31 drop compared to the previous week. However, during the same period, the price difference between LNG and traditional fuel has widened, with LNG being favoured by US$102 on 29 April, compared to US$77 the previous week. On that day, MGO LS was priced at US$847/MT in the port of Sines.
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