The Red Sea is vital for the transportation of Oil and Gas, with reduced transits already in place at the Panama Canal, this could see Eastern LPG rip higher. This presents a good opportunity to get short the LST/FEI arb.
This year, the Panama Canal has been troubled by the lack of rainfall and severe drought, with recorded precipitation for October being the lowest on record since 1950. Water levels in Gatun Lake have continued to decline, and in response
The recent developments in the LPG market have been quite significant, especially in the eastern markets. This heightened interest is a direct response to the Panama Canal Authority’s (ACP) decision to limit the maximum number of transits to 31 from
