Reuters is reporting that Asian LNG spot prices have fallen for a third consecutive week, in response to forecasts of a mild winter. Trade sources are predicting that this news will lead to significant capping of demand, amid a period of ample global supply.
The latest reports suggests that the price of a December Asian LNG spot cargo is approximately US$5.70 per million Btu. This figure represents a 20 cent decline from the previous weekly estimate.
Similarly, the latest estimated prices for January deliveries are not reported to be much higher – approximately US$6.30 per million Btu.
Commenting on the current oversupplied state of the global LNG market, one Reuters trading source said, “previously, when winter approaches there is usually certain demand that comes in, but this winter there seems to be much more supply than demand.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/08112019/lng-spot-prices-fall-in-response-to-mild-winter-forecast/