Asian LNG Spot Prices Fall Fourth Week
IndraStra Global
By The Al Attiyah Foundation, Qatar Prices for spot liquefied natural gas in Asia have fallen for the fourth week in a row due to mild weather and ample inventories. Additional downward pressure is anticipated due to the upcoming Lunar New Year holiday. According to estimates from sources within the industry, the price of LNG for delivery into northeast Asia in February was $23 per million British thermal units (mmBtu), a decrease of $2, or 8%, from the previous week. As demand remains relatively low, prices are continuing their downward trend. There has been some spot activity at the current levels, but analysts predict that the forthcoming Asian holidays will put downward pressure on the market. In addition, a continuation of unseasonably mild weather across the continent has contributed to reducing the stress on gas inventory levels. As a result, the benchmark gas price at the Dutch TTF hub has decreased by 14% since the end of 2022. In Europe, the price of natural gas and liquefied natural gas (LNG) has decreased since the beginning of the year. According to forecasts provided by the government, natural gas production in the United States is expected to increase by approximately 2% this year and next; however, analysts and producers say that recent sharp declines in prices could reduce the impact of these gains. The cost of gas futures at the Henry hub benchmark in Louisiana fell to $3.51 per mmBtu on Friday, from a recent high of $7.11 per mmBtu in the middle of December. IndraStra Global is now available on Apple News, Google News, Flipboard, RSS, and Telegram DISCLAIMER: The views expressed in this insight piece are those of the author and do not necessarily reflect the official policy or position of IndraStra Global. COPYRIGHT: This article is published under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. https://creativecommons.org/licenses/by-nc-nd/4.0/ REPUBLISH: Republish our articles online or in print for free if you follow these guidelines. https://www.indrastra.com/p/republish-us.html The views expressed in content distributed by Newstex and its re-distributors (collectively, "Newstex Authoritative Content") are solely those of the respective author(s) and not necessarily the views of Newstex et al. It is provided as general information only on an "AS IS" basis, without warranties and conferring no rights, which should not be relied upon as professional advice. Newstex et al. make no claims, promises or guarantees regarding its accuracy or completeness, nor as to the quality of the opinions and commentary contained therein.