Risavika LNG front month has dropped by 5.6 % week on week to 23.30 EUR/MWh on mild weather last week. Supply situation remains stable in Europe, while demand was comparably low during November. However, beginning of December is forecasted to be colder than seasonal norm, which should support the prices for front month.
Oil prices were supported by vaccine news last week, and remain supported for this week. Therefore, oil products have further gained 3.7-4.9 % during last week. Fuel oil 3.5 front month has increased by 4.9 % to 258.28 USD/t, low sulfur oil (MFO 0.5) has increased by 4.4 % and closed at 323.00 USD/t, and MGO 0.1 has increased by 3.7 %week on week and closed at 353.97 USD/t.
Brent crude prices hit their highest levels since March as news of a third promising coronavirus vaccine candidate spurred hopes of a quicker recovery in oil demand. US crude oil inventories likely edged lower last week, while distillate stockpiles were seen decreasing for a 10th straight week, a preliminary Reuters poll showed on Monday. In addition, most analysts had expected OPEC+ to roll over its current level of cuts until end of Q1 2021, which provide additional support to the prices. As it is going to be some time before the vaccine reaches a critical mass, demand recovery is going to be likely delayed until mid-2021.
Source: CME Group, Gasum, Reuters, Hellenic Shipping News
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
Source: Gasum