LNG

European benchmark natural gas prices dropped on the week as natural gas storage levels almost peaked in the European Union while North Asian front-month LNG spot cargo prices edged higher as more demand was expected in the weeks ahead.

European natural gas market prices remained at a substantial premium to North Asia spot LNG values, which were now even lower than the UK National Balancing Point price for November as LNG demand was very high in Europe for early winter, while Asian countries appeared comfortable with their current flows and storage as coal remained an easy option there in colder weather.