Maritime market update: market is back to demand recovery uncertainty
Risavika LNG front month has increased by 9.1 % week on week to 26.50 EUR/MWh on colder January outlook. In addition, higher demand for LNG in Asia tightens LNG supply to Europe providing additional support for gas prices in front month.
Low sulfur oil products has gained 2-2.9 % during last week, while fuel oil 3.5 front month has slightly dropped by 0.1 % to 274.70 USD/t. Low sulfur marine fuel oil (MFO 0.5) has increased by 2 % and closed at 355.68 USD/t, and MGO 0.1 has increased by 2.9 % week on week and closed at 406.85 USD/t.
Despite the recent rally of benchmark oil prices on vaccine rollout news, demand recovery is still uncertain as covid-19 infection rates continued to rise sharply in Europe. Many countries are considering more stringent restrictions over the Christmas holidays, which will dent fuel demand in the near term. OPEC on Monday pared its forecast for a recovery in oil demand in 2021 by 350