Reuters has reported that Asian LNG spot prices continue to be negatively impacted by the growing supply glut.
As spot cargoes continue to flood into the market, demand growth has been muted by forecasts of a mild winter. This has caused prices for LNG deliveries to Northeast Asia in January to fall to an estimated US$5.70 per million Btu – a decline of 20 cents from the previous week. Likewise, prices for December deliveries have also fallen by 20 – 40 cents to approximately US$5 to US$5.20 per million Btu.
In addition to weak Asian demand for LNG, Reuters trading sources are citing the fact that European gas storage capacity has nearly been filled as a reason why spot cargoes are struggling to find landing spots.