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

image

image

image

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.

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s