According to Reuters, the unloading of several floating storage cargoes into the market has caused Asian LNG spot prices to slump.
Reuters has identified that vessels floating cargoes in anticipation of higher prices have started discharging. Indeed, one Reuters trading source has said: “The November-December spread is not as wide as the spread between November and previous months was, so it doesn’t make sense to hold cargoes for longer.”
With the market already oversupplied, this influx of new cargoes has caused the average price for an Asian spot LNG cargo for delivery in December to drop to approximately US$5.90 per million Btu. This is a decline of US$0.40 per million Btu from last year.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04112019/floating-storage-unloading-prompts-asian-lng-price-decline/