May 21, 2024 23:42 GMT
Gas Prices Rise Further On Increased Demand
LNG
Competition for supplies ahead of summer has driven LNG prices higher in Europe and Asia. European LNG rose 3.6% on Tuesday to EUR 32.90 after a high of EUR 33.24 to be up 13% in May. The market remains sensitive to any supply disruptions and maintenance in Norway is being watched closely with flows expected to pick up again today.
- Asia is already facing hot weather and northern Europe is expected to experience higher temperatures next week. Cooling demand is currently a material driver of LNG demand. European storage levels are currently slightly higher compared to a year ago, according to Gas Infrastructure Europe.
- The main contractor for the US Golden Pass LNG project filed for bankruptcy which is likely to exacerbate already expected delays, according to Bloomberg.
- US natural gas is down 3% to $2.67 but is still up 34% this month driven by output cuts.
- Asian prices rose 2.9% to be up 16% in May due to increase demand for cooling and inventory building ahead of the European summer. Buyers, even from India, are purchasing available supplies.
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