Bullish sentiment for the European gas prices has eased, however, the demand for storage injections keeps prices at high levels, says an article published in Gasum.
European natural gas injections
The European natural gas storage inventories started the injection season with below the 5-year average levels, meaning that additional 47.3 TWh of natural gas should be injected to the storage during the season. The situation creates a demand for LNG, which will be a subject to a spread between natural gas prices in Asia and Europe this summer.
Drop in fuel oil prices
Fuel oil 3.5 has slightly dropped as the inventories showed a considerable draw, 0.4 % reduction week on week and settled at 336.53 USD/t for May contracts.
In contrast, low sulfur fuel oil gained 2.6 % and was at 446.86 USD/t, and marine gas oil gained 0.8 % and settled at 494.33 EUR/MWh.
According to the latest data from consultancy Insights Global, “Total stocks fell over the past week. This is the lowest recorded since the week to 4 December. Stringent controls on the movement of people across Europe have reduced regional transport fuel demand, creating arbitrage opportunities for buyers elsewhere.”
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Source: Gasum
