Evgenia Vanadzina Gasum

Evgenia Vanadzina

Analyst
evgenia.vanadzina@gasum.com
tel. +358401801066

09.06.2020  

Maritime market update: ARA oil stocks continue rising

Risavika LNG index front month has gained 10 % week on week to 15.71 EUR/MWh last week. European gas market prices were rallying last week on higher demand due to lower temperatures than seasonal norms and lower LNG sendouts from main European terminals. The rally in the stock markets and external fuels added to the upside.

Oil prices were also in a rise as OPEC+ agreed to a one-month extension of its oil production cuts (9.6 million BBL/D) and adopted a stricter approach to ensuring members compliance. The cartel will meet monthly until December to decide on production cuts, which is likely to keep oil prices supported for this year. Fuel oil front prices (FO 3.5) closed at 231.1 USD/t last week, gaining 16 % form previous week. Low Sulphur (MFO 0.5) front month has gained 17 % and closed at 288.49 USD/t.

Total oil product stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by 3% to nearly 7.3 million tonnes in the past week, a new record high. Gasoil stocks were up 5.5% to 2.75 million tonnes, the highest since mid-October, as exports up the Rhine to Germany and Switzerland slowed, with storage tanks there getting full. Fuel oil stocks also rose 4 %.

 

LNG Risavika - LNG FOB Risavika 

LBG Risavika 10 % - 10 % blend of Liquified Biogas

FO 3.5 FOB Rdam – European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures Quotes

MFO 0.5 FOB Rdam - European FOB Rdam Marine Fuel 0.5% Barges (Platts) Futures Quotes

MGO 0.1 FOB ARA - Gasoil 0.1% Barges FOB ARA (Platts) Futures Quotes

ULSD FOB ARA - European Diesel 10 ppm Barges FOB ARA (Platts) Futures Quotes

 

Front Month Price index

LNG Risavika*

LBG blend

Risavika**

FO 3.5 FOB Rdam

MFO 0.5 FOB Rdam

MGO 0.1 FOB ARA

ULSD FOB ARA

Unit

15.71

18.71

16.57

19.81

22.86

24.48

EUR/MWh

266.14

316.96

231.10

288.49

332.98

341.40

USD/t

 Price index 8.6.2020.png

Source: CME Group, Gasum, Bloomberg, Hellenic Shipping New

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika