Asian LNG prices will likely be at their lowest, seasonally, in a decade by the end of the year as rapidly rising production outstrips feeble demand, weighed down by a global economic slowdown and the U.S.-China trade war, traders said.
Most trade sources in a Reuters survey forecast spot Asian liquefied natural gas for December delivery to go no higher than $6 per million British thermal units, which would be the lowest for that month since Refinitiv began collecting such data in 2010.
They said January and February prices were unlikely to rise much above December’s level. Six dollars per mmBtu is lower than the current price of financial LNG contracts, indicating traders see them as overvalued.
Supplies of the super-chilled gas have been boosted in the past year by new terminals in Australia, Russia and especially the United States. Read More