European and Asian LNG market values dip amid high deliveries and ahead of Dutch December price bomb
Natural gas market prices and LNG cargo values declined in the Atlantic and Pacific Basins though stayed at substantial levels as the worldwide supply shortfall was marked this week by a lack of LNG tankers for charter and moderate cargo lifting levels at export plants.
European LNG retains substantial premium over North Asian spot prices because of Asia’s power flexibility
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.
Demand for LNG remains high with cargoes pointed at Asia and South America and spot values over $13.00
Demand for liquefied natural gas remained firm worldwide along with seasonally high Asian spot prices over $13.00 per million British thermal units for September and with deliveries to China, Japan and South America still being preferred to European destinations.
North Asian LNG cargoes flow even as prices retreat from seasonal highs and European values soften
North Asian LNG spot prices came off recent seasonal highs to drop into the $12.00 per million British thermal units zone as European values also eased and an economic recovery was awaited to match all the talk amid mixed signals from the oil market.
