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LNG: Robust Inventories Reassure Markets

LNG
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European LNG prices fell again on Tuesday down 4.1% to EUR 37.00, close to the intraday low, as demand is soft while storage levels are close to full. The positive supply/demand situation in Europe going into the heating season has reassured markets and also driven Asian prices lower, given the two regions compete for global supplies. 

  • European underground storage levels are around 92%, according to Bloomberg, and Norwegian maintenance is expected to be completed soon, thus reassuring markets and driving prices lower. But they will continue to be sensitive to any disruptions.
  • US natural gas prices rose 3.7% to $2.20 as recent weakness attracted market participants. Excess supply remains a problem especially during the time between cooling and heating seasons. The second week of September should be cooler for the east and south of the US as well as California, according to Atmospheric G2.
  • The first LNG export license was approved since courts overturned the US administration’s pause at the start of the year.
  • North Asian prices fell 6.4% on Tuesday as prices are seen as too high to attract buyers at a time of low seasonal demand.
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European LNG prices fell again on Tuesday down 4.1% to EUR 37.00, close to the intraday low, as demand is soft while storage levels are close to full. The positive supply/demand situation in Europe going into the heating season has reassured markets and also driven Asian prices lower, given the two regions compete for global supplies. 

  • European underground storage levels are around 92%, according to Bloomberg, and Norwegian maintenance is expected to be completed soon, thus reassuring markets and driving prices lower. But they will continue to be sensitive to any disruptions.
  • US natural gas prices rose 3.7% to $2.20 as recent weakness attracted market participants. Excess supply remains a problem especially during the time between cooling and heating seasons. The second week of September should be cooler for the east and south of the US as well as California, according to Atmospheric G2.
  • The first LNG export license was approved since courts overturned the US administration’s pause at the start of the year.
  • North Asian prices fell 6.4% on Tuesday as prices are seen as too high to attract buyers at a time of low seasonal demand.