Asian spot prices for liquefied natural gas (LNG) tumbled nearly 10 percent this week to a more than three-month low, knocked lower by a slide in oil prices, forecasts for a warmer than average winter and ample supply onshore and in tankers.
Spot prices for January delivery in North Asia were estimated at $10 per million British thermal units (mmBtu), 90 cents lower than last week, according to traders.
“The big question mark right now is how the weather will pan out as the market will quickly turn once it starts to get cold. But until then, it’s tank-top right now in many places,” said a Singapore-based LNG trader, referring to high storage levels of natural gas in North Asia.
Temperatures in major cities Tokyo, Beijing and Shanghai in the world’s top two LNG buyers, Japan and China, are expected to be warmer than usual next week, weather data from Refinitiv Eikon showed. Read More