Global Bunker Market Stabilizes in Week 20 as Scrubber Economics Stay Attractive
The global bunker market showed signs of stabilization during Week 20, with narrower price swings compared to recent weeks despite continued mixed movements across major fuel grades. Overall volatility remains present, but the market appears to be entering a more controlled phase.
By week’s end, the 380 HSFO index slipped slightly to $776.65/MT, while VLSFO rose modestly to $943.89/MT. MGO LS also declined, closing at $1,404.00/MT, reflecting ongoing uneven pricing trends across the bunker complex.
Scrubber economics remained favorable as the global HSFO-VLSFO scrubber spread widened to $167.24, comfortably above the $100 breakeven threshold. This continued to support the financial advantage of scrubber-equipped vessels burning HSFO versus conventional VLSFO consumption.
Regional spread performance, however, varied. Rotterdam’s scrubber spread dropped sharply to $96, falling below breakeven, while Singapore’s spread held steady near $125 despite briefly dipping as low as $87 during the week.
ECA pricing dynamics also shifted, with the Istanbul ECA spread rising sharply to $75, recovering losses from previous weeks. This improvement is gradually strengthening the competitiveness of ULSFO compared to traditional MGO LS, with expectations that the spread may remain near the $100 level in the coming week.
Meanwhile, broader energy market pressures continue to build as LNG disruptions tied to the Iran conflict and Strait of Hormuz instability tighten global gas supply expectations. The IEA now warns that LNG availability has already fallen an estimated 15%, and Europe faces added urgency to rebuild storage inventories ahead of the next heating season.
