#LNG Oversupply narrows basis #risk with front month #contango to 1€/ΜWh




Market signs a further fall in LNG price: As Reuters reports: “There is no global LNG spot market right now, there’s just lots of supply and no demand,” a trading source
Asia’s eroded premium means it is now more profitable to send LNG produced in Nigeria or Trinidad and Algeria towards Europe than it is to sell to Japan, whose gas hubs cannot easily absorb the intake.
France is set to receive 16 cargoes this month, up 44 percent versus a year ago, drawn from Trinidad and Qatar, while 
Turkey also upped November spot purchases to three, data shows. Britain may see the biggest supply uptick from top producer Qatar, while Europe could even start pulling in Australian supplies if Asian prices continue falling, reversing trade flow trends established after Fukushima.
Oversupply began this summer, forcing traders to store cargoes on tankers and at terminals with the intention of re-selling them once demand and prices rose.

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