Maritime Market Update: Gas Prices Surge On Tight Supply Outlook
Risavika LNG index gains continued last week, it was up 9.6 % reaching 75.11 EUR/MWh for October contracts as European gas market prices were on rise on the back of possible Nord Stream 2 delay. Meantime, Gazprom has not booked additional supply capacity through Ukraine in October, leaving gas supply situation unchanged for the next month when the market steps into a new gas year. With no additional gas supplies to the market, the prices could be seen even higher to compete with Asian gas prices in order to attract LNG cargoes to Europe. The extend of the increase would depend on the weather and demand for heating.
Benchmark oil prices remain supported by the consequences of hurricanes in the Gulf of Mexico. Oil product prices have gained on potential delays with resuming some of refining and production capacities, however, the gain was limited. Fuel oil 3.5 (FO 3.5) price has gained 0.8 % to 396.14 USD/t, low sulphur oil (MFO 0.5) increased by 2.6 % to 518.90 USD/t and marine gasoil (MGO 0.1) increased by 3.5 % to 616.33 USD/t.