Market Analysis
Crude Oil
- Brent started recovering from mid-week & recovered 4.43% from Tuesday price of $48.73/bbl.
- Brent uptick is primarily due EIA inventory numbers which depicted 5.2 million barrel of commercial inventory decrease and 0.2 million barrels of gasoline.
- The US inventory draw dawn needs to be monitored closely as last week crude prices were down primarily on technical.
- AS per BHI, US rig count increase by 8 and now stand at 885.
- Market expecting OPEC to maintain the oil cut for next six months as this perhaps is the only news, which can sustain oil prices.
Natural Gas
- Natural gas prices surge by 8.01% this week primarily lower than expected built up of inventories. AS per EIA, working gas inventories is 2,301 BCF on May 5, lower increase than expected increase of 53 BCF.
- Recent uptick is primarily due to positive sentiments in the market as US and China agreed to bolster trade.
- Natural gas wholesale prices at European hubs witnessed sharp decrease with more than 4% plunge at NBP, TTF, GPL & TRS.
- Mild weather has been a major reason for downward price movement in Europe.
- According to experts, TTF is transforming into more acceptable marker in Europe.
Currency
- US dollar face pressure on disappointing news on American inflation and retail sales. Right now trading at 1.0909 against Euro, down by 0.44%.
- Euro depicted strength due to stronger German growth news from 0.4% to 0.6% expansion.
- GBP took a hit on Thursday due to BOE decision of keeping Interest rate unchanged and downward revision of estimated growth from 2.0% to 1.9%. Trading currently at 1.2882 from 1.2939 at the start of the week.
Weather
- Spring season in full swing in Europe, North & South America.
- Middle East and Asia is facing hot temperature.
- Europe temperature remained mild from 15o-20o
- Middle East in low 30o C, whereas Indian Subcontinent is facing hot temperature of around 35o
- North East and South East Asia regions are also entering into summer with mercury ranging between 25o – 30o
- South America is also witnessing moderate temperature.
- Weather outlook is same for coming week, which means additional requirement from Asian markets and subdued interest from Europe.
LNG
- LNG prices moved south in the markets of Japan, Korea and Taiwan, primarily due to lower demand from Europe and supply abundance. Friday LNG prices were heard at mid $5/MMBTU level.
- Prices in India also down throughout the week as India is taking advantage of supply glut.
- Storage tanks are full in India and with monsoon approaching, Dabhol terminal will not be accessible for vessels.
- Prices in Europe witnessed decrease by 1%, primarily due to mild weather and lower wholesale prices.
- On the supply side Angola has put one cargo on tender for Mid-May loading, while Nigeria has supply available and closed a tender for May delivery.
- Indonesia Bontang plant also issued a tender for June and July loading.
- US and China agreement on trade created excitement in the LNG sector, however US Henry Hub prices are still not workable for Chinese markets.
- Cheniere Energy already in discussion with Chinese State owned companies for supply of LNG in long term basis. So far Cheniere has sold nine cargoes on spot basis to China.
- Number of gas discoveries has compelled Egypt to reduce it dependence on imported LNG, with deferring cargoes in 2017 and aim to cut it further to 30 cargoes in 2018.
- Sinopec has finished building its third LNG terminal, located in the northern Chinese port city of Tianjin. The terminal has the capacity to manage 3 MTPA (400 MMSCFD).
- Lebanon plans to moor three FSRUs along its coastline.
- Petronas is focusing on South East region of Pakistan, India and Bangladesh for supply of LNG.
- Thailand’s PTT plans to expand its LNG import facility by setting up another LNG import terminal with 7.5 MTPA capacity.
- Overall demand in Asia expect to pickup in coming weeks due to summer demand.
LNG Merchant Activity
- This week 52 vessels carrying 3.5 million tons (178.40 BCF) loaded from various ports across the globe.
- Six vessels carrying 20.74 BCF departed from Nigerian port for European and Asian destinations.
- One vessel left from Equatorial Guinea carrying 2.99 BCF.
- Pont Fortin, Trinidad & Tobago loaded two vessels with 5.65 BCF.
- 3 vessels loaded this week from Sabine Pass, USA.
- Two vessels departed from Russia carrying 6.07 BCF.
- 12 vessels left from Australian export terminals at Darwin, Dampier and Gladstone ports for Japan, China and Singapore carrying 39.14 BCF.
- Middle Eastern terminals at Das Island (UAE), Qalhat (Oman) and Ras Lafan (Qatar) loaded 21 vessels carrying 73.73 BCF for Asian destinations.
- 18 BCF loaded onto 3 vessels from Indonesia.
Departure Date | Vessel Name | Capacity(CBM) | Loading Port | Discharge Port | ETA Discharge Port |
8-May-17 | LNG BAYELSA | 137,500 | Bonny, Nigeria | Europe | 22-May-17 |
8-May-17 | METHANE JANE ELIZABETH | 145,000 | Bonny, Nigeria | Manzanillo, Cuba | 27-May-17 |
7-May-17 | RIOJA KNUTSEN | 176,300 | Bonny, Nigeria | Not Known | 29-May-17 |
10-May-17 | LNG BONNY II | 177,000 | Bonny, Nigeria | Montoir, France | 30-May-17 |
12-May-17 | LNG RIVERS | 137,500 | Bonny, Nigeria | Asa, Japan | 05-Jun-17 |
12-May-17 | GASLOG GLASGOW | 232,000 | Bonny, Nigeria | Not Known | |
9-May-17 | METHANE LYDON VOLNEY | 145,000 | Punta Europe, Equ. Guinea | Not Known | 07-Jun-17 |
9-May-17 | CATALUNYA SPIRIT | 135,423 | Point Fortin, Trinidad | Escobar, Argentina | 21-May-17 |
12-May-17 | BRITISH TRADER | 138,248 | Point Fortin, Trinidad | Not Known | |
6-May-17 | MAGELLAN SPIRIT | 163,194 | Sabine Pass, USA | Not Known | |
9-May-17 | MARAN GAS AMPHIPOLIS | 173,400 | Sabine Pass, USA | Not Known | |
12-May-17 | GASLOG CHELSEA | 153,000 | Sabine Pass, USA | Atlantic Basin | 16-May-17 |
8-May-17 | GOLAR MAZO | 135,000 | Bontang, Indonesia | Not Known | 23-May-17 |
9-May-17 | SENSHU MARU | 125,835 | Bontang, Indonesia | Within Indonesia | |
10-May-17 | SK SPLENDOR | 135,540 | MIBGas LNG, Indonesia | Tyongeong, Korea | 16-May-17 |
9-May-17 | ENERGY NAVIGATOR | 147,558 | Prigorodnoye, Russia | Ishikari, Japan | 13-May-17 |
12-May-17 | CLEAN ENERGY | 146,794 | Prigorodnoye, Russia | Not Known | |
7-May-17 | METHANE MICKIE HARPER | 167,400 | Dampier, Australia | Not Known | 25-May-17 |
9-May-17 | ENERGY FRONTIER | 144,596 | Dampier, Australia | Nagoya, Japan | 19-May-17 |
11-May-17 | WOODSIDE CHANEY | 174,000 | Dampier, Australia | Pacific Ocean | 21-May-17 |
12-May-17 | WOODSIDE DONALDSON | 162,620 | Dampier, Australia | Incheon, Korea | 23-May-17 |
11-May-17 | WOODSIDE CHANEY | 174,000 | Dampier, Australia | Pacific Ocean | 21-May-17 |
7-May-17 | ALTO ACRUX | 147,978 | Darwin, Australia | Kisarazu, Japan | 17-May-17 |
8-May-17 | GASLOG SANTIAGO | 154,948 | Gladstone, Australia | Zhuhai, China | 18-May-17 |
8-May-17 | CLEAN PLANET | 162,000 | Gladstone, Australia | Tianjin, China | 20-May-17 |
7-May-17 | YK SOVEREIGN | 124,582 | Gladstone, Australia | Pyeongtaek, Korea | 18-May-17 |
10-May-17 | CESI GLADSTONE | 174,000 | Gladstone, Australia | Qindago, China | 19-May-17 |
10-May-17 | HYUNDAI ECOPIA | 146,790 | Gladstone, Australia | Tyongeong, Korea | 23-May-17 |
12-May-17 | MARAN GAS POSIDONIA | 164,000 | Gladstone, Australia | 22-May-17 | |
9-May-17 | MERIDIAN SPIRIT | 163,285 | Melkoya, Norway | Dunkirk, France | 13-May-17 |
10-May-17 | ARCTIC PRINCESS | 147,835 | Melkoya, Norway | KlaiPeda, Lithuania | 16-May-17 |
10-May-17 | UMM SLAL | 260,928 | Milford Haven, UK | TENERIFE, Spain | 14-May-17 |
9-May-17 | SHAHAMAH | 137,756 | Das Island, UAE | Kawasaki, Japan | 25-May-17 |
12-May-17 | HYUNDAI OCEANPIA | 134,300 | Qalhat, Oman | Tyongeong, Korea | 21-May-17 |
8-May-17 | DISHA | 136,026 | Ras Laffan, Qatar | Dahej, India | 11-May-17 |
8-May-17 | AL ZUBARAH | 135,510 | Ras Laffan, Qatar | Yokkaichi, Japan | 25-May-17 |
7-May-17 | MILAHA QATAR | 145410 | Ras Laffan, Qatar | Egypt | 14-May-17 |
7-May-17 | BU SAMRA | 260,928 | Ras Laffan, Qatar | Western Europe | |
7-May-17 | DUHAIL | 210100 | Ras Laffan, Qatar | Egypt | 14-May-17 |
8-May-17 | MARAN GAS MYSTRAS | 159,800 | Ras Laffan, Qatar | Not Known | |
7-May-17 | ZEKREET | 178,200 | Ras Laffan, Qatar | Yokkaichi, Japan | 23-May-17 |
7-May-17 | HYUNDAI TECHNOPIA | 134,524 | Ras Laffan, Qatar | Incheon, Korea | 22-May-17 |
6-May-17 | TAITAR NO.3 | 144,627 | Ras Laffan, Qatar | Tachung, Taiwan | 19-May-17 |
9-May-17 | AL NUAMAN | 205,981 | Ras Laffan, Qatar | Freest, Germany | |
9-May-17 | AL ZUBARAH | 135,510 | Ras Laffan, Qatar | Yokkaichi, Japan | 25-May-17 |
10-May-17 | AL SAHLA | 211,842 | Ras Laffan, Qatar | Dahej, India | 13-May-17 |
10-May-17 | AL JASSASIYA | 142,988 | Ras Laffan, Qatar | Not Known | 23-May-17 |
11-May-17 | AL GHARIYA | 205,941 | Ras Laffan, Qatar | Tokyo, Japan | 30-May-17 |
11-May-17 | AL SAFLIYA | 210,100 | Ras Laffan, Qatar | Not Known | |
12-May-17 | UMM BAB | 143,708 | Ras Laffan, Qatar | Not Known | 16-May-17 |
12-May-17 | AL MAYEDA | 261,157 | Ras Laffan, Qatar | Not Known | |
12-May-17 | BROOG | 136,359 | Ras Laffan, Qatar | Not Known |