Gasum maritime market update: oil product prices turn bearish

Risavika LNG gained 1.7 % week on week and was at 46.63 EUR/MWh by the end of lats week. Gas prices remain supported as summer maintenances for pipeline gas continue, while LNG arrivals are slow. Nord Stream will be out for maintenance from today for 10 days with Gazprom likely to use its inventories in Europe to supply its contractual volumes. This would potentially decrease inventories, increasing demand for injections on the second half of the summer, but pipeline gas supplies could be higher then. According to Platts, the first string of Nord Stream 2 could be ready to supply volumes in September as it takes 2-3 months to test and certify the pipeline.

Oil product prices were down last week following benchmark crude prices, now trading above 75 USD/BBL. The failure to reach an agreement within OPEC + and lack of scheduled meeting date turned into a bearish sentiment with risk of a price war. In addition, spread of coronavirus Delta variant in Europe causes uncertainties about economic rebound of the continent and oil demand outlook, which adds to a bearish sentiment.  Fuel oil 3.5 (FO 3.5) price dropped 2.5 % to 398.22 USD/t despite a significant inventory draw in ARA region, low sulphur oil (MFO 0.5) and marine gasoil (MGO 0.1) were comparably resilient dropping only by 0.7 and 0.2 % to 520.91 USD/t and 601.44 USD/t respectively.

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, Platts, Bloomberg, Financial Times

*An estimate for LNG FOB Risavika

** An estimate for 10 % LBG blend FOB Risavika