LNG

Southeast Asian countries with historically low gas storage levels have resorted to panic buying of spot LNG cargoes. Analysts warn a “vicious feedback loop” could weaken domestic purchasing power and further exacerbate energy price inflation.

Financial, not physical trade is amplifying price swings at the Dutch TTF as Russian gas exports to Europe are unlikely to return. Hedge funds had to cut their positions after higher price volatility increased their value at risk (VaR), though analysts reckon there are many CTA buying levels starting in the low €40s/MWh.