Evgenia Vanadzina Gasum

Evgenia Vanadzina

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

16.06.2020  

Maritime market update: Oil stocks continue building on low demand

Risavika LNG index front month has dropped 1 % week on week to 15.58 EUR/MWh mainly due to warmer weather than seasonal norms across Europe. Currently, lower LNG arrivals and sendouts support the gas market prices from falling very low.

Oil prices have also dropped week on week following the news on US inventory buildup and concern about a second wave of covid-19 cases in China, Japan and the US. Fuel oil front prices (FO 3.5) closed at 207.29  USD/t last week, loosing 11 % from the previous week. Low Sulphur (MFO 0.5) front month was 6 % lower and closed at 272.07 USD/t.

The total oil product stock held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by over 2% to 7.45 million tonnes in the past week, another record high. Gasoil stocks rose over 3% to 2.85 million tonnes, their highest since early September as demand from inland locations decreased. The German buyers were postponing purchases due to full storage tanks. This was due to them awaiting a planned reduction in value added tax (VAT) from 19% to 16% for six months starting in July 1, according to Hellenic Shipping News.

 

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

15.58

18.58

14.86

18.68

22.13

23.56

EUR/MWh

263.85

314.67

207.29

272.07

322.35

328.68

USD/t

 Price index 15.6.2020.png

Source: CME Group, Gasum, Hellenic Shipping News

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika