LNG

European natural gas prices and US Gulf Coast last day futures for free-on-board cargoes from Louisiana and Texas increased for a second day after the Iranian drone and missile attacks on Israel brought more uncertainty and volatility into oil and gas markets.

European spot natural gas prices followed futures prices lower to marks last seen in June 2021 just before energy security concerns entered the market and at least seven liquefied natural gas cargoes were heading for the UK even as the differentials widened in favour of Asian spot cargo values.

European and Asian liquefied natural gas front-month prices moved higher on the week, though wholesale futures dropped substantially in the December-February peak winter season as Europe signalled full gas storage had been reached, weather forecasts were positive and spot vessel charter rates retreated.

North Asian liquefied natural gas spot prices were overshadowed by a renewed surge in the Dutch Title Transfer Facility wholesale futures price to over $40 per million British thermal units while US Gulf Coast prices jumped because of the new politically fixed supply line to Europe.

European natural gas markets posted record summer prices for the UK National Balancing Point and the Dutch Title Transfer Facility and other EU markets, showing that politicians have neglected energy supply planning amid the largely uncontrollable economic effects of Covid-19.

Global LNG cargo liftings were higher this week and North Asia spot LNG prices rose for December deliveries, though still failed to breach the $7.000 per million British thermal units level and fell back for January and February 2021 shipments compared with last week.