02.06.2020

Maritime market update: ARA oil stocks reach a record high

Risavika LNG index has dropped further by 3 % week on week to 14.08 EUR/MWh last week on the record low European gas prices. There is a steady supply of pipeline gas imports and LNG to Europe, while demand is low due to seasonal change and industrial demand is still in recovery after the covid-19.

Oil prices were rallying again on potential OPEC+ production cuts extension beyond June. Fuel oil prices (FO 3.5) for June closed at 195.25  USD/t last Friday, 7 % higher than previous week. Low Sulphur (MFO 0.5) front month has gained 2 % and closed at 243.81 USD/t. At the same time, marine gasoil and ultra-low sulphur diesel prices dropped by 1 %.

Total oil product stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by nearly 2% to over 7 million tonnes in the past week, the record high, according to data from Insights Global. Gasoil stocks rose by over 1% as demand from inland locations dropped compared with the previous week, and as tanks at those inland locations begin to fill. Fuel oil stocks were up around 1% as imports into the hub rose. This shows that road to recovery might be long, although global oil demand has recovered from the low levels of March and April.

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

Source: CME Group, Gasum, Hellenic Shipping News

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika