According to the latest Reuters report, Asian LNG spot prices have risen to a three-week high, ahead of winter demand. Meanwhile, limited vessel availability has led tanker rates to nearly double.
Asian spot prices for LNG deliveries in November are currently reported to be approximately US$5.80 per million Btu – an increase of 25 cents from last week. Spot prices for December delivery are currently estimated to be US$6.45 per million Btu.
In light of events outside the industry, which have caused oil prices and shipping rates to nearly double, it is not unlikely that LNG spot prices could be boosted further. Indeed, LNG tanker rates rose quickly after China National Offshore Oil and Gas Company (CNOOC) recently announced it was seeking to charter new tankers to replace six vessels linked to China Ocean Shipping Company (COSCO), a company that is now under US sanctions for allegedly transporting Iranian oil.