Evgenia Vanadzina Gasum

Evgenia Vanadzina

Portfolio Manager
evgenia.vanadzina@gasum.com
tel. +358401801066

29.09.2020  

Maritime market update: Bunker suppliers looking to add jet to marine blending pool

Risavika LNG front month has further increased by 4.8 % week on week to 22.45 EUR/MWh for October, colder weather forecast resulted in higher demand for natural gas in Europe.

Fuel oil 3.5 has decreased by 2.5 % to 232.33 USD/t, while low sulfur oil products showed a mixed picture. MFO 0.5 has gained 1.3 % and traded at 299.34 USD/t and MGO 0.1 has lost 2.9 % week on week and reached 321.71 USD/t. Oil prices have been relatively stable, thus, oil products market is impacted mainly by inventory situation.

Independent jet stocks in the Amsterdam-Rotterdam-Antwerp (ARA) region rose to the highest on record at 1.03 million t in mid-August and are now at more than 90% of that. Floating stocks peaked at 1.3 million t at the same time and have remained there. The strength of marine fuel prices over jet fuel has prompted some blending of straight-run kerosene to produce very low sulphur fuel oil (VLSFO) in Singapore, the world's largest bunkering hub, and in the Middle East. However, it is not yet a widespread practice in Europe. Fuel inspectorates in Antwerp indicated that there was some interest in adding jet into marine fuels, but that it could create issues for blends reducing fuel viscosity and density, according to Argus Media.

 

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

22.45

25.45

16.66

20.55

22.09

23.30

EUR/MWh

380.32

431.14

232.33

299.34

321.71

324.98

USD/t

 Price index 29.9.2020.png

Source: CME Group, Gasum, Argus Media

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika