Global LNG Prices Slumped to 6-month Low, Against Usual Winter Trend
Dec. 11, 2018
This week, Asian spot prices for liquefied natural gas (LNG) fell to the lowest level in six months. Low demand maintained and the deliveries of tankers from north Asian waters empowered supply.
January spot prices posted the lowest reading since May, down by USD1 to USD8.80/mmBtu. For the first time in 2018, the reading also got below the prices of the same period last year.
February prices dropped less and contango with the January level. Prices were projected at around USD9.00-9.30/mmBtu.
Low demand and falling prices for LNG in winter is not usual. This time, the frantic purchasing by Asian utilities in September and October have already fulfilled storages for the upcoming months.
Going forward, some traders viewed that high demand would return. They have begun to utilize laden LNG carriers as storage in the waters of some Southeast Asian’s nations. Other traders are waiting for their cargoes to fill the delivery slots.