Risavika LNG front month has dropped further for front month contracts, it was at 28.38 EUR/MWh for March and 5.1 % higher week-on-week. However, European hub prices are currently quite bullish on colder weather outlook by the end of February, which can give support to front month prices this week.
Oil products had a considerable upside last week on the back of oil prices rally. Markets are quite optimistic on demand recovery due to recent drop in US inventory, rollout of vaccine globally oil production cuts. Fuel oil 3.5 has increased 7.4 % and closed at 334 USD/t for front month contracts. Low sulfur oil (MFO 0.5) has gained 8.4 % and closed at 437.28 USD/t, and marine gasoil (MGO 0.1) has increased 7.7 % week on week and closed at 480.66 USD/t.
The total amount of oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell over the last week of January, according to consultancy Insights Global. Stocks of all surveyed products fell, with the exception of fuel oil. Fuel oil stocks rose to reach their highest since late November. The increase in available supply is weighing heavily on marine fuel prices in the ARA area and creating export opportunities. However, increase in benchmark oil prices supported oil products future prices, while LNG prices are decreasing amid seasonal change.
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, Global Insights