2020 November 3
Risavika LNG front month has dropped 4.5 % week on week reaching 24.06 EUR/MWh on the healthy and stable gas supply to European markets, high gas storage levels and milder outlook on the weather in November.
Oil prices has lost almost 10 % during last week on new lockdown restrictions in Europe, rising covid-19 cases around the world, which add to demand uncertainty, and increase of Libyan oil production, which can potentially add more than 1 million barrel per day to an already oversupplied market. Following the oil prices, fuel oil (FO 3.5) has lost 11.7 % to 217.50 USD/t, low sulfur oil (MFO 0.5) has decreased by 10 % and closed at 275.24 USD/t, and MGO 0.1 has lost 8.7 % week on week and closed at 302.06 USD/t.
Meanwhile, the most awaited news for this week are the results of the US election and potential impact on energy industry. Biden has called for a swift pivot to clean energy, while Trump makes the case for the country’s abundant fossil fuel resources and an “energy dominance” agenda. The winner will control regulations that could hinder or accelerate growth across energy sectors and markets and help to direct investment. Analysts see Biden preserving a role for gas, his climate plan would invest $2 trillion in renewable power, electric grid upgrades, green building initiatives and other clean energy initiatives that would displace fossil fuels. Biden could end the tariffs between Washington and Beijing that have restrained US LNG exports to China and made commercial development more challenging. Alternatively, President Donald Trump could make it easier to drill for the shale gas that feeds terminals and further speed up project permitting. The US LNG industry faces a critical year in 2021, during which new capacity may be sanctioned or fall off the board altogether.