Maritime market update: Oil stocks continue building on low demand

Risavika LNG index front month has dropped 1 % week on week to 15.58 EUR/MWh mainly due to warmer weather than seasonal norms across Europe. Currently, lower LNG arrivals and sendouts support the gas market prices from falling very low.

Oil prices have also dropped week on week following the news on US inventory buildup and concern about a second wave of covid-19 cases in China, Japan and the US. Fuel oil front prices (FO 3.5) closed at 207.29 USD/t last week, loosing 11 % from the previous week. Low Sulphur (MFO 0.5) front month was 6 % lower and closed at 272.07 USD/t.

The total oil product stock held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by over 2% to 7.45 million tonnes in the past week, another record high. Gasoil stocks rose over 3% to 2.85 million tonnes, their highest since early September as demand from inland locations decreased. The German buyers were postponing purchases due to full storage tanks. This was due to them awaiting a planned reduction in value added tax (VAT) from 19% to 16% for six months starting in July 1, according to Hellenic Shipping News.

Source: Gasum

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