European gas markets experienced another bullish week with Risavika LNG index reaching 59.19 EUR/MWh for September, gaining 12 % week on week. The energy sector prices in Europe have been rallying, the markets have seen power spot prices in Germany above 100 EUR/MWh and carbon prices maintained their upward trend. All this supported gas prices for the next month contracts. However, the most significant factor for an observed increase was due to a jump in Asian spot LNG prices, which could translate into lower LNG deliveries to Europe, the market with already tightened supply. The price curve shows the highest levels for Q4 21 followed by sharp drop towards Q2 22.

Benchmark crudes and oil products prices were supported by closures of production and refinery sites in the regions impacted by the hurricane Ida. However, this increase could be short-lived and currently companies are assessing the damage to restart their production. Fuel oil 3.5 (FO 3.5) price increased 12 % to 394.31 USD/t, low sulphur oil (MFO 0.5) and marine gasoil (MGO 0.1) were up by 10.2 % and 9.4 % to 502.61 USD/t and 591.03 USD/t respectively week on week. The attention of the market is on 1^st of September OPEC+ meeting, which will define the course of oil supply in the medium term. However, no surprises are expected for the output for September.

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, Reuters

*An estimate for LNG FOB Risavika

** An estimate for 10 % LBG blend FOB Risavika