Tight LNG Supply and Oil Oversupply?

Maritime market update: tight LNG supply and oil oversupply? says an article on Gasum.

Market update

Risavika LNG dropped 5.8 % to 34.8 EUR/MWh week on week (w-o-w) after a month of the rally. The weather forecast adjusting higher at the beginning of June provided a bearish sentiment to the market. However, the European gas markets remain bullish on lower supply due to maintenances in Norway and slow LNG arrivals, while demand for storage injections is at its highest for the summer. Biden administration waived sanctions on Nord Stream 2 last week, thus, the pipeline can potentially be built until the end of 2021 and start supplying natural gas to Germany this winter.

Oil product prices continued a downward trend on weaker crude oil prices and lower demand despite the inventories draw. Fuel oil 3.5 (FO 3.5) was lower 4.8 % w-o-w to 238.37 USD/T, low sulphur oil (MFO 0.5) decreased by 4 % to 455.95 USD/t, and marine gas oil (MGO 0.1) dropped 1.9 % to 537.35 USD/t. Amsterdam-Rotterdam-Antwerp (ARA) fuel oil stocks drop 4% on the week to 1.214 million mt, according to Global Insights. At the same time, the fineries throughput in Europe is considerably below 2019 levels, indicating that demand is far from being recovered.

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: Gasum

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