Reuters is reporting that Asian spot LNG cargo prices have risen for a third straight week, as Chinese demand continues to recover, in light of waning numbers of new cases of coronavirus being recorded in the country.
Rising prices are certainly a positive sign for the market, however Reuters trading sources have reported that an influx of cargoes from the west, in response to China’s rejuvenated demand, has the potential to reverse these gains. Indeed, Rystad Energy is forecasting that, due to depressed commercial and industrial activity as a result of the coronavirus COVID-19, European gas demand could decline by more than 4% over the next two months. This could easily trigger a redirection of LNG supply flows from Europe to Asia.
The latest Asian LNG average spot prices for May deliveries have been estimated at approximately US$3.50 per million Btu (an increase of 20 cents on the previous week’s estimate). April spot prices have reportedly also risen by 30 cents to US$3.70 million Btu.
Read the article online at: https://www.lngindustry.com/lng-shipping/20032020/asian-lng-prices-rise-for-third-week-in-a-row/