Evgenia Vanadzina Gasum

Evgenia Vanadzina

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

30.06.2020  

Maritime market update: Fuel oil stocks in ARA fell for the first time in June

Risavika LNG index fell by 3.3 % week on week to 15.11 EUR/MWh. Nevertheless, European market prices remain supported by a reduction in Norwegian production, weak LNG send-outs, and forecasts for further LNG cargo arrival cancelations in July and August.

Benchmark crude prices closed 3 % lower last week on an increase in COVID-19 cases around the world and fears of weaker demand due to new lockdowns. Accordingly, fuel oil front prices (FO 3.5) closed at 220.44  USD/t last week, lower by 2.4 % than the previous week. Low Sulphur (MFO 0.5) front-month fell by 4.9 % and closed at 275.88 USD/t.

Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by 4% in the week to Thursday as exports increased, according to Insights Global. Fuel oil stocks were also down by 1.3 %, reaching 1.502 million tonnes. This was the first drop in fuel oil stocks in June, the road to recovery remains slow and currently it is threatened by a potential second wave of COVID-19.

 

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

15.11

18.11

15.80

18.94

22.71

24.27

EUR/MWh

255.89

306.71

220.44

275.88

330.71

338.58

USD/t

 

 Price index 29.6.2020.png

Source: CME Group, Gasum, Reuters

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika