European LNG and wholesale natural gas prices surged over the past week as a lack of confidence prevailed in energy markets over restrictive European policies while Asian LNG demand increased and futures prices from the US to India were strong through to the year-end.
European and Asian liquefied natural gas cargo pricesincreased for a fourth straight week with the Northern Hemisphere winter gas season ending on a high storage note and as some European Union nations even built their storage this week as demand was mixed in the north and the south.
European and Asian liquefied natural gas prices rebounded from three-year lows as cooler weather and the return of government energy policy uncertainties offset high global storage levels and concerns over trade route insecurity.
European liquefied natural gas cargo and wholesale gas futures prices rebounded while North Asian LNG spot prices also gained as a cloud of uncertainty hung over demand dynamics in the months ahead even as European Union gas storage was almost full.
European natural gas prices and LNG values of the Dutch Title Transfer Facility (TTF) fell by more than 5 percent on the week while the Japan-Korea Marker for spot cargoes remained solid as other energy markets including crude oil dropped towards mid-2021 levels amid mixed economic and demand signals.
European and Asian natural gas market prices declined and shipping spot charter rates began to gather pace while there were fewer cargoes to lift this week from global export plants.
Europe’s natural gas and LNG markets suffered another price fall on the week of 5.8 percent amid mild winter weather as the Japan-Korea Marker price for spot cargoes extended its front-month premium to $5.65 per MMBtu over European Union values.
Deliveries of liquefied natural gas cargoes increased to Europe this week while the differential between the benchmark European Union LNG price and spot cargoes for Asia narrowed because of seasonally milder weather and high storage across the EU.
European Union natural gas benchmarks and North Asia spot liquefied natural gas cargo prices advanced because of concerns that Russia could cut off the main pipeline link to Germany and cause a global LNG supply crisis at a time when US and Australian shipments were down because of outages.
European Union liquefied natural gas prices remained strong and attracted cargoes amid unprecedent summer demand underpinned by global oil prices, while Asian spot LNG cargo values settled lower as a rebound was awaited in imports by China and India.