Evgenia Vanadzina Gasum

Evgenia Vanadzina

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

11.05.2021  

Maritime market update: expectation of more LNG on high hub prices

Risavika LNG risen further by 1.9 % to 33.94 EUR/MWh week on week. The European gas hubs remain bullish on demand for storage injection, slowdown of LNG arrivals, colder outlook for rest of May and competing fuels. The temperatures in Northwest Europe were considerably higher seasonal averages during last week but expected to drop below seasonal norms during this week. June gas contract prices in Europe are trading close to Asian spot prices, indicating that there could be more LNG cargo arrivals next month.

Oil products gained on the inventories draw and benchmark oil prices being resilient despite the news from India. Fuel oil 3.5 has further increased by 1.2 % and settled at 371.70 USD/t for June contracts. Low sulfur fuel oil (MFO 0.5) increased by 2.2 % and was at 477.77 USD/t, and marine gasoil (MGO 0.1) gained the most, increase by 3.3 % and settled at 542.78 EUR/MWh. However, there is a bearish sentiment weighs on oil product prices as the World Health Organization declared India's B.1.617 coronavirus strain as a variant of concern. Crude oil and refined product prices slumped during mid-morning trade in Asia.

 

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

33.94

36.94

26.65

32.80

37.27

39.56

EUR/MWh

574.96

625.79

371.70

477.77

542.78

551.82

USD/t

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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, S&P Global Platts

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika