LNG

Asian liquefied natural gas cargo prices moved higher in the past week while European Union natural gas values declined, opening trading opportunities while crude oil prices jumped to seven-month highs and Middle East geopolitical tensions increased.

European and Asian natural gas futures and spot prices declined again as markets were confident that threats to shipping would be stopped in strategic trading routes as some European Union nations even managed to build gas storage levels in the week before entering 2024.

European liquefied natural gas price benchmarks and Asian spot cargo margins dropped to under $1 per million British thermal units as over-supply compared with the past two-and-a-half years and mild weather offset global shipping security and navigation issues from Suez to Panama.

North Asian spot LNG cargo prices fell on the week while European wholesale natural gas values also declined as full storage in the southern European Union nations of Spain and Italy and mild seasonal weather in Northwest Europe eased geopolitical supply concerns.

European and Asian wholesale natural gas and LNG prices edged higher on the week, propelled by security concerns and conflict in the East Mediterranean even as Northwest Europe’s weather was mild for the time of year and gas storage was still at record levels.

European Union liquefied natural gas and pipeline gas prices plunged by a double-digit margin again as storage inventories increased and mild weather weakened demand, while more cargoes from a low seasonal level of liftings began to point at Asian markets.