Maritime market update: Fuel oil stocks in ARA fell for the first time in June

Risavika LNG index fell by 3.3 % week on week to 15.11 EUR/MWh. Nevertheless, European market prices remain supported by a reduction in Norwegian production, weak LNG send-outs, and forecasts for further LNG cargo arrival cancelations in July and August.

Benchmark crude prices closed 3 % lower last week on an increase in COVID-19 cases around the world and fears of weaker demand due to new lockdowns. Accordingly, fuel oil front prices (FO 3.5) closed at 220.44 USD/t last week, lower by 2.4 % than the previous week. Low Sulphur (MFO 0.5) front-month fell by 4.9 % and closed at 275.88 USD/t.

Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by 4% in the week to Thursday as exports increased, according to Insights Global. Fuel oil stocks were also down by 1.3 %, reaching 1.502 million tonnes. This was the first drop in fuel oil stocks in June, the road to recovery remains slow and currently it is threatened by a potential second wave of COVID-19.

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 QuotesPrice index 29.6.2020.png

Source: CME Group, Gasum, Reuters

*An estimate for LNG FOB Risavika

** An estimate for 10 % LBG blend FOB Risavika
Source: Gasum

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