The cold blast sweeping through Europe has helped send European natural gas prices to fresh two-year highs.
This in turn has accelerated a gas-to-oil switching dynamic that has seen Low Sulphur Gas Oil (LSGO) cracks rebound. LSGO futures rose by $8/mt to close the session at $705.75/mt on Friday.
Update
On Monday 10th February, natural gas jumped to a two year high of over $100 per barrel oil equivalent. This increase makes burning oil for industrial use more cost effective than natural gas.
